Challenges in Saving for Retirement
Retirement, everyone looks forward to it after working countless years of their life. But the issue is, are they really ready for it? Has all the planning been done correctly? Are the variables minimized? Most importantly, is there enough money to live on?
Planning for retirement can be very difficult in the sense that throughout ones life they had to put money aside every paycheck in hopes that when that wonderful day of retirement comes they will be financially stable in the future to come. Some of the variable in retirement are: how long one may live for, will they need the money for just them or a spouse as well, do they still have annual/monthly payments that must be made, and how much will they need to live comfortably and do what they want to be able to do. After it’s all said and done, the most important question is how long they expect to live for. If they set the retirement fund to last them 30 years but they only make it 25 years that’s not as big of an issue as opposed to if they plan on living 30, but actually live for 40 years. The funds will eventually run out, and then what is left for them to do? They will be too old to work and earn more income, and many may not be fortunate enough to have loved ones support them.
Today’s market is becoming a major concern for many; their stocks and bonds are not doing well, and people are losing a large percentage of their investment. Money managers have found that when people were retiring in a strong bull market such as the early 90s their investment could easily last them nearly three decades, but in today’s market the retirees are really struggling. A few tips for those retiring are they should have roughly 50% of their money in bonds or bond funds to allocate t ...