Real Life Retirement Vs. Fantasy
Got A Plan?
Your real life retirement may not always turn out as you had imagined. Financial advisors say that the best way to produce financial results that will help you match your fantasy retirement with your real life retirement is to work from a financial plan. Although that sounds like financial common sense, it’s not followed by many. But why? Is a financial plan to difficult to prepare? To hard to stick to? To tedious to bother with? Yes, yes and yes.
No Retirement Do-overs
In real life if you do not like something you can usually return it or resell it and start over…your car, your house, your kids, well maybe not your kids, they are yours forever. All fun aside, with real life retirement there are no do-overs. You get your entire working career to save for retirement, if you miss that opportunity you cannot start over. Avoid getting stuck working when you really want to be retiring; work from a financial plan during your working years.
We All Get 50 Years
It’s what you save not earn during your 50 working years that will get you to retirement. No doubt, during your working years your earnings can get stretched. Between career expenses, buying a house, getting married, raising a family and sending the children to college it’s easy for expenses to exceed income. A financial plan can help you adjust your spending.
It’s So Far, Far Away
The easiest finance to justify delaying is retirement investing. People put off saving for retirement by convincing themselves that it is a long way off so they will have plenty of time. Be oh so careful, time slips away so fast. Before you know it your working years are up; you are ready to retire but you can’t. You delayed saving so you do not have enough money to stop working and live a comfortable retirement. If you work from a financial plan you can include retirement investing in with your other expenses.
Plan, What Plan?
When writing up your financial plan be honest with yourself. Ask yourself the serious questions. Do you spend too much? Are there any areas of your life where you can tighten up on your spending? If you did get a raise, bonus or tax refund would you invest it or spend it? Do you have a retirement vision? Do you know what age you want to retire at? Are you saving enough to reach that goal? Can you save more? These are only questions you can answer.
Retirement can be relaxing and rewarding but if you enter it with weak finances it can be lonely, boring and dreadful. Prepare well, work from a financial plan.