Retirement Planning Facts or Fabrications?
Do not make retirement planning so complicated; it’s not that difficult if you just stick with the facts. You decide, do you want to live based on facts or fabrications? Can you have it all or is it more realistic to say that you either pay now or pay later?
Fabrication#1 – Source of Retirement Income.
You plan on relying upon Social Security to support you during your retirement years.
You cannot rely upon Social Security to be available, and if it is, will it pay you enough money to support yourself? You personally need to accumulate enough money during your working years to support yourself during your retirement years.
Fabrication#2 – Number of Years.
You can work forever. You are strong and energetic and love your work.
Your working years will be about 40 years of your life (20’s to 60’s). Your retirement years will be approximately 20 to 30 years of your life (60’s to 80’s/90’s). You will most likely eventually lose steam and no longer wish to work as hard or as many hours.
Fabrication#3 – Need More Money.
You never earn enough money so you never have enough left over to invest.
You do earn enough money, but you waste it. If you have poor spending habits of course you never have any money left over. You may not know where your money is going because you never developed a way to monitor your spending.
Fabrication#4 – Budgeting
You just have to create a budget, you don’t have to really follow it.
A budget is a way to monitor your spending; it will show you where you may be wasting money. Creating a budget without following it will not save you money.
Fabrication#5 – You Tightwad You
You have to become a tightwad to find enough money to invest into your retirement plan.
You do not have to become a cheap, tightwad. To find that extra money to invest you just need to be frugal on some things. You can splurge on some things as long as you do not spend more money that you earn in your pay check.
Fabrication#6 – Gotta Be Big
You have to make huge retirement plan contributions to make an impact.
You do not have to make large contributions to grow your retirement accounts. The amount of your contribution is just as important as the consistence of your investing and the amount of time your money is in the market. Invest regular amounts of money at regular intervals.
Fabrication #7 – Too Late
You are already in your mid-40’s so it’s too late to start investing into a retirement plan.
It’s never to late to start investing for retirement.
You can make up for lost time by maxing out your retirement plan at work, take advantage of employer matching if offered. Cut back on personal expenses to find extra money to invest. Invest the time to use a retirement calculator. These retirement calculators spell it out for you. It will show you how much money you need to invest in your mid-40’s to retire when you reach your mid-60’s.
Fabrication #8 – Who Cares?
You are too young to be worrying about retirement investing; old people do that.
The best to time to start saving for your retirement is your first job. The longer your money is invested in the market, growing in value, the larger your nest egg will be when you so reach retirement age. Imagine the value of money that is invested for 40 years!!
Fact, Fabrication|Healthy Balance
Based on the facts clearly stated, you can live frivolously during your working years and not save a dime for your retirement years or you can find a healthy balance between spending and investing. You decide.