WOW! 31% ARE NOT SURE

According to the Motley Fool, “Only 31% of US adults are confident their retirement savings will last.”  That’s an amazing number.  How sure are you about your plans and funding?

Why are people concerned about their future?  Here’s a beginning list:

  • The current economic downturn or potential recession
  • The world conflicts and potential escalation with Russia and China
  • Inflation at 8+% and pay raises of only 4+%
  • The supply chain crunch: Food, essential products, infant formula
  • Gasoline prices and the cost of travel/commuting
  • Moving from remote to office jobs with family disruptions
  • Remaining pandemic issues along with monkeypox (what’s next?)
  • The cost of raising a child until age 17 is $233,610 on average.
  • Your average life expectancy in the U.S. is almost 80 years.
  • What can you add to the list?

What are some guidelines that might help give you a direction?

  • Put a percent of income into a retirement account. The older you are, the higher the %..
  • Maximize your 401K contributions, both the matching amount from the company and the optional amount beyond the company match. No other investment or asset can give you a greater return-of investment than the 50% or more match from your employer.  About 80% of employers have a 401K plan. Unfortunately, only about 70% of employees take advantage of the opportunity to participate. For the 30% missing out?  Bad mistake.
  • Don’t count on Social Security as the only source of income during retirement. It’s not enough.  It may only cover about 50% of your expenses at best.
  • The old formula of using only 4% of your savings annually during retirement has been modified to less than 4%. Stay tuned.  I’m afraid that number may change with time.
  • The old formula of spending 75% of your current expenses during retirement isn’t holding up. Doctor expenses, drug costs and medical outlays have accelerated faster than the average cost of living.  Inflation is also a comfortable retirement killer.

So, what do you do?   Simple advice that may be difficult to achieve:

  • Keep your job. Taking a break or being unemployed puts you behind the retirement curve.
  • If a spouse provides a second income, pocket most of it. A double income today may not last.  Basing retirement 20 or 30 years out on a double income today, is unrealistic.
  • Maximize your 401K, especially the part that the company matches
  • Put some money aside during the good times, in preparation for the bad times.
  • Keep your skills, knowledge and experiences at the leading edge. It may determine your future. Live below your means as you move up the ladder of success.
  • Retiring early may not be a good idea. Understand your finances first, then figure out how you plan to use your time productively.  Some activities/hobbies/travels are short lived.

Plan for retirement early so you don’t have to worry about it when it’s 5 or 10 years away.  Playing catchup when you’re running out of time is a losing strategy.

For a FREE critique of your resume, send to: wkaufmann44@gmail.com.

By My Greener Future

My Greener Future is a Job Search Strategy and Career Coaching Company. At My Greener Future, you will be connected with industry coaches who care about you and your career as much as you do. They will work with you to create your very own custom career plan and support you in achieving your short term and long term career goals. Join My Greener Future TODAY and see how it will change the way you think about your career.

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