Financial Aid for Your Retirement

To preface this newsletter, I want you to know that it’s a bit of a tongue-in-cheek newsletter to get you thinking about and motivated to deal with your own retirement plan.

Financial aid for everyone! This isn’t a political newsletter, but our country now seems to be in a state of entitlement (more so than ever). If that’s the case, why not financial aid for those who can’t afford to retire the way “they want to retire?”

Aren’t we all “entitled” to the retirement lifestyle we “want?” As crazy as it sounds, there are some people who believe this should be the case. If it were, our country would be even more in debt than we already are (which would be unimaginable considering the amount of debt we have now).

COVID was a historic event that gave rise to things we have NEVER seen before.

-People being shuttered in their houses for months if not a year or more
-Schools closing
-Businesses closing

The byproduct of COVID was that the government stepped in to try to stop what it thought would be a financial disaster of epic proportions.

FREE money for everyone

-Businesses got billions of dollars to keep their doors open and to pay employees.
-Employees were paid for not working so they could pay their bills (mortgage, grocery, etc.).
-Student loan forgiveness

It seems there is a new financial aid package being talked about every week to help people who were never meant to be helped by the government.

The bi-product of all this free money is NOT good

Record inflation because the government printed money like never before.
People quit jobs because the financial aid from the government was so high.

This gravy train will end and where will many Americans be? The government is already broke and eventually the free money gravy train will end. When that happens, many people will be further behind the eight ball than they’ve ever been before when it comes to their retirement planning.

There is NO SUCH THING as Financial Aid for Retirement!

Yes, there is Social Security income for workers who paid into the system, but that will hardly be enough to live the lifestyle in retirement that most want to live. Because there is no such thing as financial aid for your retirement which means your retirement is in your hands!

Here are a few questions you need to think about when it comes to retirement:

-When do you plan on retiring?
-How much money (outside of Social Security) do you need to accumulate so you can retire?
-When do you plan on dying?

These three questions sound simple, but most people have not planned for them.

Determining how much you need to accumulate so you can use that money in retirement is only half the question. If you don’t plan on an age when you plan to pass away, how can you determine how much money you need to start with?

For example, if you are 50 years old and have $100,000 in savings, and you plan to retire at age 65how much money do you need to accumulate before retirement so you can generate the retirement income that is needed to live as you want EVERY year for so long as you live?

You can’t answer the previous question unless you plan for the year you are going to die. You could use the government life expectancy table plan when you are going to die. But is that a good idea?

What if you plan financially to die at age 85 and you live to age 95?

What happens to your lifestyle when you run out of your retirement nest egg at age 85?

Reality check—the reality is that most people are not planning well enough in advance for their retirement. And since there is NO SUCH THING as financial aid for retirement, that means those who do not plan will have to make sacrifices in retirement.

What sacrifices?

-Retire later
-Live on less money in retirement
-Get a part-time or even full-time job in retirement (which isn’t really retirement)

Many people will have hard decisions to make because they didn’t plan in advance. Don’t be one of those people.

Start planning for retirement RIGHT NOW!

To help with your retirement plan, please reach out to our office and we’d be happy to work with you to create a “realistic” retirement plan so you don’t have to worry about running out of money in retirement.