Retirees Face A Rude Awakening, Here are the Hard Facts in Retirement

What other investment or saving vehicles can generate predictable income one can’t outlive? Annuity income and perhaps a HECM home purchase with no mortgage payment and delaying Social Security benefits to age 70 may salvage many boomers from an impoverished lifestyle.

Remember, the rules for accumulating retirement resources are not the same as spending them. The real retirement apocalypse is coming during distributions where the dangers of the sequence of returns and market under performance collide. That coming train wreck may deplete many retirement plans at some point in a retiree’s 80s, while many of those same retirees will live on into their 90s. 

For all other succeeding generations, this is a wake-up call out of your indifference to your own future. You just can’t live for today. That’s just a myth to blind you to your own future. Tomorrow, you’ll wake up and you’ll be age 70 with 30 years to go. The lethargy toward retirement planning is caused by a false sense that when you’re young, time is on your side. Einstein is often quoted, “Compounded interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.”

But even compounded interest needs time and lots of it, as you will later in life. Paying yourself first and often will determine your lifestyle in retirement and whether you enjoy golden years or experience years of regret. In the old agriculture of America, storing up for the winter was a matter of life and death. The harvest had to be adequate enough to supply six months of winter, that’s half the year, every year. Retirement funds need to be adequate enough to supply every year for a minimum of 30 years.

For more information on how you make the right moves now to secure your entire retirement, just email me… steve@onthemoneynews.com

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