January 26, 2013
Retirement isn't easy for many Americans and people living in countries where the global recession is taking its toll in the wake of unemployment and loss of benefits from retirement packages to government assistance.
Speaking as a Senior, about to turn 70 next month, I see no need for me to retire as I enjoy what I do and feel that I am making a difference, though I could retire if I chose to. Most of the friends in my age group are professionals, now retired, a few still working part time in their fields.
We come to the rest of the senior community around the US and the world ... Some have longed planned for retirement and are out having fun. Others have had their dreams dashed in an unsustainable economy, where one has come to understand not to believe what we read in the news and that historically economies fail. Many people were counting on inheritances, pensions, 401Ks and the like, that no longer exist or are not enough to support them. Many women, in my age group, never worked and therefore are not eligible for Social Security benefits, unless widowed. As in all age groups, the need to secure money for the future is not always easy and even the best laid plans ... can go astray.
Many of us have stories about bad investments and be taken for money at some point in our lives - by anyone from friends, family, lovers, so-called financial planners, scammers, etc.
Below are are helpful tips on financial planning, though nothing in the economy is ever set in stone and is subject to change.
Lies We Tell Ourselves About Retirement Yahoo - January 26, 2013
We may not want to admit it, but our own beliefs are often the biggest obstacle in the journey to financial freedom. Sometimes our own behaviors make it more difficult for us to achieve a financially secure retirement.
Here are a few lies you may be telling yourself that are preventing you from reaching a comfortable retirement:
1. Everybody works until full retirement age
In recent years there has been a surge in the proportion of people who expect to work past 65, but the reality is that a significant number of people will stop working well before the traditional retirement age. Whether it's due to choice or a disability that prevents mature employees from being able to endure the daily grind, more than a few individuals will stop working well before age 65. Not everyone gets to choose when they enter their retirement years.
2. There's a secret to investing that I don't know about yet.
There may turn out to be a secret investing formula, but the odds of finding the holy grail are so slim that it doesn't make economic sense to pursue the hunt. Stick to the boring but effective strategy of saving early and often, watch investing fees, and pick an asset allocation plan where you can stay the course when the market inevitably takes a dive. This will give you a much better chance at living a comfortable retirement than trying to pick winning investments.
3. I can always save later, so why start now?
This may be true, but there are few things in life more comforting than being financially free. Start saving as soon as possible, and you'll become financially independent sooner. When you do, you'll notice that your stress level will decrease. This could help not only with your relationships to others, but also your work performance, possibly helping you to increase your income.
4. It's too late to save, so let's not even try
It doesn't matter how old you are, because putting money aside for retirement is always a step in the right direction. Put some effort into saving money and you may find that reducing your expenses might be easier than you first thought. The more you have saved up, the more you get to spend in your golden years.
5. Money is safe in a bank account.
Too many people have the illusion that money is safe as long as the balance doesn't go down, but the reality is that inflation will eat into your purchasing power unless you learn how to properly manage and invest your wealth. Those who put all their money in a savings account may not experience the volatility that comes with different investments, but they are sure to be able to afford less and less as years go by, which is a real threat too.
6. The Joneses have everything.
It may seem like everybody else is able to go out to buy whatever they want while you barely scrape by, but that's probably not the case. You may be concentrating solely on what they just bought versus their total budget. Bill may have a brand new car, but perhaps he doesn't eat out much. Perhaps Sandy spends a few hundred dollars on fine wine, but she may not spend much on clothes. Retirement savers are spending too, but their focus is on building a nest egg. If you want to have a comfortable retirement, you need to make saving for it a priority.
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