The Truth About Retirement
Think about the Future You for a moment – a person just retired. Do you imagine yourself on a beach somewhere? Are you finishing that novel you wanted to write? Maybe you’re spending more time with your grandkids. Whatever the Future You is doing, developing a tangible plan to get there is crucial.
The first step in proper planning is separating fact from fiction:
Fiction: You need to be wealthy to get help with retirement
Almost half of surveyed Americans believe it’s not possible for middle-income families to save for a secure retirement, according to a recent COUNTRY Financial survey. More than half say they don’t have enough money to save or they need the money they have to pay off debts.
It’s no surprise they feel this way. With all the news about the future of Social Security and negative savings rates, many people aren’t confident about their future retirement lifestyle.
The fact is you don’t need a lot of money to talk with a financial advisor about achieving financial security no matter where you’re starting from. Retirement doesn’t have to cost a fortune, but the security people feel from having a tangible plan is priceless.
Fiction: I’m too young to think about retirement
You’re never too young. Start saving today. The earlier you start, the more you can earn off your investment. If a person starts putting away $3,000 per year at age 35, it’s likely that person will have almost $367,038 by the time he or she retires. If that person begins saving the same amount just a decade earlier, the total would be $839,343*.
With retirement planning, you need to think long-term. You shouldn’t think about the timing of the market. Instead, think about time in the market.
Fiction: I have more important financial obligations
Retirement might not seem urgent to you because there’s no monthly bill. It’s easy to pay back a car loan or send a check to the power company when you see a statement every few weeks. Sadly, many Americans don’t feel the same urgency about retirement, even though the planning (or lack thereof) they do now can affect their future quality of life. Think of retirement saving as making a payment to yourself every month.
A COUNTRY Financial representative can provide a tangible plan for your future financial security. The plan should be understandable, not complicated. If you have questions about retirement, feel free to call me, Sean Marler, at 782-8363.
Don’t let myths keep you from planning a successful retirement. The Future You will thank you.
*Assumes hypothetical average annual rate of return of 8% and does not reflect any taxes that may be assessed on distributions. These hypothetical examples are for illustrative purposes only and do not represent the performance of any security.