Every eight seconds an American turns 50; that is more than 10,000 people every day per AARP. As more people enter the second half of life, many are worried about retirement. Many believe that they will not have enough saved. Because of this, some may use excuses to reconcile their perceptions with reality.
Even though the future holds many unknowns, what we say about our future could hurt us. Have you ever heard someone say one of the following?
“I’ll just keep on working” – This is becoming an increasingly popular retirement plan strategy. But in reality, just 13 percent of retirees surveyed last year by McKinsey & Co., of New York, actually continued to work past age 65. Many times events, like health problems, job loss and care giving issues, force retirement sooner than expected.
“It’s too late for me, I’ll just wing it” – Many had planned to save but for whatever reason they haven’t accumulated enough so far. Therefore they may feel, “What’s the use, it’s too much trouble.” Since retirement planning isn’t an exact science, it is important to stick with a plan than no plan at all.
“I won’t live that long” – Of course no one knows actually how long they will live, but ignoring the fact that you may live longer than you think is not the best strategy. An estimate of your life expectancy based on factors such as family history and health is essential to consider how long your retirement assets should last.
“Someone will take care of me” – For many couples, one spouse knows little or nothing about finances and depends on the other to be responsible for them. So what happens if the “responsible” spouse unexpectedly becomes ill, disabled or dies? Then who will handle the finances?
Comprehensive financial planning can help you sort through your own excuses and help you develop a personal plan for taking charge of your future. Retirement can be an emotional topic with no easy answers so don’t tackle the problem alone, get help from a financial advisor.
For more information contact Rebecca Robins, CPA/PFS, CFP®, CA Insurance Lic#0D75745 at 661-222-2331. Securities offered through Associated Securities Corp. (ASC), member FINRA/SIPC. Advisory services offered through Associated Planners Investment Advisory, Inc (APIA), ASC, David S. Reinders, CFP®, Inc., Registered Investment Advisors. David S. Reinders, CFP®, Inc. is not affiliated with ASC or APIA. 25129 The Old Road, Suite 105, Stevenson Ranch, CA 91381.