Whether you are 21 or 71, retirement planning is something you want to get started on right now.This article will take you less than three minutes to read and it could save you a lot of financial pain in years to come. So. regardless of age it’s never too early and never too late to start busting those retirement planning myths!
Six Retirement Planning Myths
Myth #1. When I retire I won’t need as much to live on.
Hogwash! How do you know what the cost of living is going to be? Sure the kids are off on their own and the house might be paid off but medical bills and cost of living are unpredictable. You should be able to live on less but why would you want to?
Myth #2. I’m a young pup and retirement is far, far away!
Get real dude, time flies when you’re having fun and burning mun. Of course it’s much easier to save a measly $29 a week at 34 than it is to save a whopping $240 at 54! That’s about what it’s going to take to have $200k in the old nest egg at 65. So, you can do it the easy way or the hard way. You decide oh youthful one!
Myth #3. My adorable children will take care of me.
Whoa! Haven’t you been watching TV? Your kids are more likely to move back in with you than they are to take care of you! Think back a bit… didn’t you preach to your kids about personal responsibility and good old independence? Keep your kids in your life but keep them out of your retirement planning.
Myth #4. Social security will save the day!
Yeah, that will be the day when pigs fly. Uncle Sam hasn’t figured out if there will even be any social security in another decade or two. If you want to hold onto a weak retirement strategy then just count on Uncle Sam to be there with that retirement check when you need it. You are better off counting on your own discipline and resourcefulness. You can start drawing social security at 62 but depending on your age, you might be better off to consider that as a bonus than a sure thing.
Myth #5. I don’t have enough money to save or invest for retirement.
That might be true but then… maybe not. Take a hard look at where your money is going. Have you maximized your contributions to your 401(k) or other employer-sponsored retirement plans? Have you considered leveraging your home equity or other under-performing assets into safe and secure investments? Have you scrutinized your spending habits? Do you really need that satellite dish and 500 channels of mind numbing video? Do you really need the newest and shiniest shoes and chicest Chevy’s? Even if you can squeeze just a little bit out of the budget each week, it’s better to start right now. Be consistent and automatic with savings and investing. You might never feel like it’s enough but that is no reason to not to start.
Myth #6. I can’t afford a financial planner.
Many financial planners are compensated by the companies they represent and therefore charge nothing to you unless you do business with them. Others charge for their time on an hourly or fee-based schedule. Find someone you trust and get references. Take your time, go slow and do a little homework. Retirement planning is all about the future but it needs to start today.