Two Certainties, Death and Retirement

There are Two Certainties, Death and Retirement. They are 2 things a lot of people never sit down and plan for when they are young. One is 100% certain to happen one day. You hope you have the chance for the other on your own terms long before death does come around.  Before you say that retirement isn’t a certainty if you happen to die first, I am taking the stand that if you die first then you just retired from your career. But you aren’t around to enjoy it. Not my idea of great retirement.

Life Can Get In The Way Of Planning For The Certainties of Death and Retirement

People are busy raising families, completing school, advancing their careers, or just trying to make ends meet. It is not just the young. We seem to be preprogrammed to think we will live forever and I think subconsciously believe that we will work as long as we want to or need to. We put off getting healthier for whatever reasons just like we put off saving for some unknown future retirement date.  I am not saying that by being healthy and saving we have full control of death or retirement in our hands. I am just stating we can make our chances a lot better.

There will always be a large population of people who never wake up.

They continue on without giving retirement a thought until it becomes very difficult to make up that lost time that one could have been saving and preparing. Turning it around does start with education. I definitely try to set an example for my kids and council them on full enrollment in their 401Ks and in living below their means, avoiding debt, and living the best life they can on their own terms.

There have been all kinds of studies and statistics presented regarding how the earlier you start saving for retirement the less you have to save each month to meet your target. Wait to start saving and lose your biggest ally, time.  I also believe that those who plan for early retirement are even farther ahead. They not only have their financial goals set but also a sooner time-frame they have targeted to meet it. There are many people who have been forced into retirement before they planned to because of job loss or health issues. There are no guarantees even with the best planning and preparation. However, you will be far better off with a plan for retirement than if you had not planned and something sidelines your plans.

1. Vocalize

Don’t just think about what you want to accomplish, talk about it. There is no accountability if you keep it to yourself. Talk with your spouse or significant other, your financial planner if you have one, your brother or sister, etc. Talking about it will make it real. The younger you are the better but don’t think because those younger days have passed you by that there is no hope. It’s never too late.

Plan the retirement lifestyle you want, what it will take to fund it, and when you want to retire.  Write your plan down, track your progress, revisit and adjust your plan as necessary, and never get discouraged away from your goals. You are never too young, too old, or too poor to do something about it. Even if you planned on working until 70 and you are sidelined before then, you are vastly better off having done something to prepare for retirement.

2. Save

Save as early as you can, as much as you can. Your savings and investments will increase with time. Set in your plan your savings goals. Allow flexibility and always look for opportunities to increase your savings, like raises, debt pay off freeing up more money, bonuses, etc.

3. Balance

Live the best life you can while living below your means. Don’t live a life where you are always feeling deprived. Learn the difference between wants and needs. If you are on track and can budget for one of those “wants” and have thought it out rationally, do it. But don’t confuse that with what you should really stay focused on, your longer term goal. Rethink what really brings you and your family (if you have one) happiness. Live a balanced life.

4. Track

If you have moved from job to job over the years, do not lose track of your 401Ks. Always be aware of any retirement benefits your job offers. If you have long lost IRAs or 401Ks in your past, make an effort to simplify your accounts. Whether you leave them where they are or move them to a new combined IRA, keep track of your money and keep adding to your current account. Remember that every time you move, you need to notify everywhere you have an account open so that you keep getting statements and notifications. Never cash your old 401Ks or IRAs out no matter how small. If you move it, roll it over to another IRA to avoid penalty and lost retirement savings.