If you are in your 20’s or 30’s and starting your careers, you’d better not ignore good financial advice.

Advice:  Have a Plan A and a Plan B.

Plan A: Approach retirement planning completely different than your parents and grandparents.  Do not expect to rely upon the same sources of retirement income that they did.

Plan B: Select a career you have such a deep passion for that you would never want to stop working in it.   You may be there for a very long time.

The Logic: If you fail to follow Plan A, you can always fall back onto Plan B and work forever and ever and ever.

Balance It Out: Gee, let’s see, plan and save or work forever…hmmmm, big decision.

Hot tip: We all reach retirement age….eventually.

 

Ready or Not, Here Comes The New Way

Social Security | Not A Reliable Source of Retirement Money

  • You will pay in | You will not get a pay out.

good financial advice and social securitySocial security has been a reliable source of retirement income for your parents & grandparents, but it will not be for you.  Fifty years from now when you reach retirement age, social security benefits may be obsolete.

Government statistics show that the current social security program is almost out of money.   According to the social security administration, by 2041 there will only be enough money to pay 74 cents per dollar of scheduled benefits….ouch!!

Social security is broken, we all know that.

Unless the ratio of employees paying into social security can sustain the larger number of retirees receiving benefit payments from social security, than social security will never rebound as a reliable source of retirement money.

Pensions | Not A Reliable Source of Retirement Money

  • Unaffordable for companies.

Future generations will not be able to count on traditional pensions; they are being phased out.

Pension plans, sometimes called defined benefit plans cost companies too much money to fund and maintain.   Companies can no longer commit to the long-term payouts required in a traditional pension plan.

The Most Reliable Source of Money | YOU!!

  • Best Choice But Most Difficult One.
Planning for retirement needs some serious study

Image by austinevan via Flickr

If you are in your 20’s or 30’s (the Gen X or Y age group) your financial future is being spelled out for you.  You should see the writing on the wall…the only way for you to afford retirement is to do save for it on your own.

Funding your own retirement and not relying on the government or your employer is the most reliable way.   When you do it yourself, you know it will be done right.

No one cares about your retirement or your investments more than you do.   The government doesn’t care and your employer may only care a little.   Your retirement is important to you and you alone.

  • Get Beyond Financial Complacency Issues.

Since you are in charge of your retirement planning you need to get engaged; you need to visualize your retirement years.  If you have a complacent attitude about it you are making the process very hard for yourself.

Don’t let the age thing stop you.  You may feel that you are too young to think about retirement, but you aren’t.   If you want to eventually stop working, you will need every year of the next 30 or 40 years to save enough money to do that.

  • Get Beyond Instant Gratification Issues.

If you are the type of person that needs the “high” from instant gratification you need to temper that down a bit and shoot for more of a long-term “lift”.

It’s okay to spend money on stuff in order to satisfy your instant gratification “high”, but be sure to save some retirement money at the same time. The only amount of money that will be there when you reach retirement age is the money that you sent ahead.   You send money ahead by investing it not buying stuff.

Take Care, Don’t Ignore

You take care of your health, your career, your house, your car…don’t ignore your retirement.  Take the time, make the effort to pay forward your retirement.