retirement planning

New Orleans Fire Department / New Orleans Fire Department Facebook

If you want to build high, you should first go deep.

Almost immediately following the tragic events of September 11, 2001, there was popular agreement that another magnificent structure must take the place of the fallen Twin Towers. In April 2006, about five years later, construction began on the structure that would one day be called One World Trade Center.

  During the first three years of that construction, however, no small amount of grumbling went on concerning the “lack of progress,” so to speak, on the project.

401(K) 2012 / Flickr.com https://bit.ly/2w8kxci

Living within your means is an illusion, and when you are awakened from your dream, it will be too late.

Most of us have the idea that if we are living within our means, we’re OK, even if it means we can’t save anything right now. You’re not racking up debt, but you’re also not saving. Is that OK for a while?

No.

If life was a straight line of experiences and expenses, each one following predictably after the other exactly as planned, you might be able to pull this “living barely within your means” thing off.

Retirement Readiness

May 8, 2019
Joonas Tikkanen / FLICKR.COM https://bit.ly/2Vch1rs

According to Socrates, “The unexamined life is not worth living.”

That’s the gist of my first suggestion to folks with their eyes set on retirement: take a close look at your life now. What aspects of your life do you want to keep, what do you want to change and what do you want to do away with altogether?

Start with the first big question: “what is my current lifestyle?”

Neil Moralee / Flickr.com https://tinyurl.com/y89en4ej

No matter who you are or where you work, you don’t have money in a retirement plan. You may have money … in a retirement account.

These terms (“retirement plan” and “retirement account”) are often used interchangeably, but I think that’s not helpful. When one uses the term “retirement plan” for a 401K, a 403B, a 527 or even a WD40, it can mistakenly lead to the belief that you actually have a PLAN for retirement.

Jamie / Flickr.com https://tinyurl.com/yakqnb3e

If you are someone old enough to be thinking about retirement budgeting, think realistically…and don’t forget your meds.

 

I find many pre-retirees assume that their post-retirement medical expenses will go down, since they no longer have to pay for health insurance.

Medicare to the rescue, right?

Well, if that’s you, hold your horses, Roy Rogers. You need to check your assumptions.