My youngest daughter sent us a text message recently that goes something like this….
My dream is to spend conception, pregnancy and the first 5 years of my child’s life not working, mostly secluded and traveling! Need to save $300k to be able to do that.
It got me thinking.
I’ve been bugging them about grandkids….
So I went to Google and started searching for ideas on how she could accomplish her goal.
In my brief search, I ran across another retirement calculator, which then led me to an article that discussed the 4% rule at length.
It was my first time hearing about the 4% rule, so I was very intrigued….. (my eyes and ears are sensitive to any information about retirement these days.
After reading it, I became very hopeful!
Here are 3 nuggets from the article…
- The Four Percent Rule is the suggested rule of thumb to use to determine how much you should withdraw from your retirement account each year.
- This rule seeks to provide a steady income stream to the retiree while also maintaining an account balance that keeps income flowing through retirement.
- Unfortunately, this rule may not work for everyone because this rate may not be sustainable for some retirees who live longer need their portfolios to last longer. Medical costs and other expenses may also increase as retirees age.
It’s good to keep yourself informed, but remember to always consult the proper financial professional before making life-changing money decisions.
Some interesting retirement stats from the U.S. Census Bureau….
- The average American retires at age 62
- 20.7% of the population will be 65 years or older by 2050
- The average length of retirement is 18 years
- Nearly half of all retirees leave the workforce earlier than planned, often involuntarily
- 41% of retirees leave the workforce due to health problems or disabilities
- 14% of retirees leave the workforce in order to provide care for spouses or other family members
People are living longer than ever and many do not have adequate retirement savings to sustain themselves throughout their remaining years.
Wherever you are on your financial journey, it’s never too early or too late to start planning for retirement.
Many people have unrealistic expectations about their retired lives.
They imagine that they will take up golfing or tennis, begin hobbies, learn to play the guitar, travel, etc.
Things that are totally foreign to their current existence……
A good test is to evaluate your life currently.
What do you enjoy doing now?
It may be unreasonable to expect that you will suddenly develop a passion for something totally different the day after you retire.
Pay attention to your desires, drives and passions.
The most successful retirees plan out their post-working lives.
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Until next time…..
Agree or disagree? I love your comments! So please let me know your thoughts in the comment section below.
I look forward to hearing from you!!!
Althea
Helping God’s people realize and achieve their true financial potential, become debt-free, build wealth and give generously!!
PS. Financially, most of us know what to do; we just have trouble doing it. That’s where a coach can help. CONTACT ME for a FREE 15-minute consult.
