How old will you be before you can retire?
When I was about 30 years old I was talking to an older woman at work, who was somewhere around sixty years old. She did some kind of office work, secretary, accounting, or maybe something else.
Somehow the subject of retirement came up. She told me that she would have to work for the rest of her life because she changed jobs too often. Does this sound like your situation?
Maybe you are in your forties or early fifties and wondering how in the world are you going to be able to retire.
Or, maybe you will have to work until you are seventy years old or possibly seventy five years old before you can afford to retire.
Nothing wrong with working until you are seventy years old, even if you decide to only work part time. In fact, some people don’t like retirement because they are use to following a daily routine.
I am in my late sixties and I was very fortunate that I was able to retire at age 62. I would have liked to have worked until I was at least 63, but I could not do so because of health reasons.
My body no longer allows me to do physical type work. I can work fine while sitting down, just not standing up all day like I use to be able to do for ten hours.
When you retire will you be able to enjoy your golden years?
Are you paying yourself first instead of paying for everything else first?
If you are not paying yourself first and if you want to be able to retire at age 70, or maybe sooner, you need to pay yourself first every payday. Otherwise you may not be able to retire.
You probably can’t retire on one million dollars!
As a former insurance agent for a large insurance company, I am very well aware of insurance company life expectancy actuary tables.
People have been living longer and life expectancy has been increasing, except maybe for the past couple of years.
What if medical breakthroughs allow most people to live to age 100, and maybe even longer. Or, maybe you just happen to eat right, exercise and don’t smoke and you live a very long life.
I believe my farther lived until he was 88 or 89 years old. My mother is in her mid 90s, so it is definitely possible.
With the dollar continuing to decline in value, your one million dollars just five years from now will be worth much less than it is today unless you are investing your money.
You need to think again if you feel you will be able to live a comfortable life for twenty or more years on one million dollars. A catastrophic medical emergency can wipe out a large portion of your one million dollars.
Divide one million dollars by twenty years and that gives you $50,000 per year to live on. What will you live on if you live more than twenty years?
I have said this in another one of my blog posts, but, I feel that it is well worth repeating. People don’t plan to fail, they fail to plan.
The younger you are when you start paying yourself first the longer your money will have to work for you. As you get older you are likely to find this harder and harder to do.
If you want to retire some day rather than work out of necessity, start paying yourself first every pay check.
Do whatever it takes to cut your expenses such as credit card debt so you have a six to nine month emergency fund.
You also will want to have money to invest for the long term.
Check with a professional when it comes to retirement plans and setting up a retirement account.
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