A Cup of Retirement by Jim Stovall
Photo by Senior Living from StockSnap
There are many factors in 21st-century life that we must plan for. We should have car insurance to cover us while we’re on the road as well as homeowners or renters insurance to cover our possessions at home. Everyone should have a will whether they are wealthy or not. Many people who do not have significant assets believe there is no need for them to have a will. However, if you have children and die without a will, your state government is going to decide who raises your children. If you’re incapacitated, the state government will decide who handles your money and health care needs. While each of these eventualities can be covered, and may or may not occur, all of us will eventually retire if we live long enough.
When most pensions, retirement plans, and Social Security were established here in America, the average retiree only lived a few months past age 65. Today, the average worker reaching retirement age can look forward to 18 years of life in retirement. This is an amazing change and a wonderful development as it offers people many years to enjoy the fruits of their labor. However, we must all be prepared.
To paraphrase one of my heroes, Charles Dickens, retirement will either be the best of times or the worst of times based upon our planning and persistence. Our parents and grandparents could depend on company retirement plans or pensions, but we are going to have to do it ourselves. If you plan ahead, you will have a much more luxurious retirement than any of your ancestors. But if you don’t plan ahead, it can be devastating without the pension or corporate retirement plan safety net.
As I review the current statistics regarding retirement balances, it seems to be a tale of two scenarios including the best of times and the worst of times. Some Americans started saving early and have remained consistent. They have invested in prudent growth funds and can look forward to living as literal multi-millionaires in their golden years. On the other hand, many Americans have no savings and no retirement. Their golden years are sadly going to be made of fool’s gold.
Fully one-third of Americans spend more money on coffee than they put into their retirement savings. These are not poor people but, instead, are people who have poorly managed their assets. It’s easy to put it off to some unspecified time in the future, but all you need to do to receive an abrupt wake-up call is realize that, for most people, a 40-year work-life is what they can expect. If you’ve been working 20 years, you should be halfway to your retirement goals. This should either make you feel satisfied and relaxed as you look at your retirement balance or should give you a wake-up call jolt like a very large cup of strong coffee.
As you go through your day today, realize that a little planning and preparation now will make a huge difference later.
Today’s the day!
Jim Stovall is the president of Narrative Television Network as well as a published author of many books, including The Millionaire Map: The Ultimate Guide to Creating, Enjoying and Sharing Wealth. He is also a columnist and motivational speaker. Follow him on Twitter (@stovallauthor) or Facebook (@jimstovallauthor).