Everyone has the same hope: to extend their lifespan. Everyone has the hope that they will have a long life. But do we have the financial resources to support such a long life?
Let’s look at a handful of intriguing results from a study conducted in 2022 by Age Wave and Edward Jones so we can go on to prepping.
The pensioners questioned have indicated that they anticipate living a mean of 89 years, and they believe that a pension that lasts for 29 years is perfect.
Nearly a 70th of those polled responded positively to the question of whether they aspire to reach the age of 100. What is the primary motivation behind this wish to live a long life? To have more opportunities to enjoy with their loved ones, including family members and friends.
There is no way for any of us to know how much longer we will continue to exist because none of us can see the future. These ideas, however, have a genuine foundation in truth, thanks to advancements in medical care and a growing understanding of the importance of leading health behaviors.
On the other hand, if you want to spend those additional years with your loved ones and benefit from a longer lifespan, you need to ensure your financial situation is in good form. What steps can you take to ensure that this occurs?
The following are some of the most fundamental actions to take:
– Start saving and investing often and frequently. Even though it has been around for a long time, this bit of financial guidance is still relevant today. The sooner you begin setting money aside and making investments for your golden years, the bigger the potential accumulation will be. Consider the following: If you saved up only $5,000 a year at the age of 25, invested it at an annual rate of return of 6.5 percent, and decided not to make any premature withdrawals, you’d have $935,000 by the day you got to the age of 65.
You will only eventually wind up with $460,000 if you wait until you are 35 years old to begin saving for retirement, and if you received the same 6.5 percent yield (remember, with no premature pulls), you would save. And if you didn’t start putting money down until you were 45 years old, you’d finish up with just over $200,000, assuming the same return of 6.5 percent.
– Be wary of borrowing. When you hit retirement age, you probably do not want to be weighed down by responsibilities. Therefore, while you are still gainfully employed, you should try to eliminate any undesirable obligations, especially those loans that do not offer the monetary advantages of tax-deductible interest charges. The less debt you have, the more money you can put away and invest wisely.
– Continue to evaluate how far you’ve come. You must keep a close eye on the steps you take to realize your objective of having a decent retirement. Your portfolio holdings may see oscillations over the short term, particularly in highly unpredictable capital markets like those we witnessed at the beginning of this year. If you look at the long-term consequences, though, you will have a far better understanding of the predicament you are in.
For instance, during the past ten years, has the growth of your assets been on par with what you had anticipated? And looking ahead, do you believe that you are in great condition, or do you anticipate needing to adjust how you invest your money? Please remember that if you are over 50, you are liable to earn “catch-up” payments to your 401(k) and IRA. These payments enable you to contribute more money than the standard limitations do. As you get closer to retirement, you also might want to consider modifying the mix of investments you hold to reduce the amount of risk you are exposed to eventually.
You may contribute to the attainment of this goal by considering your financial decisions and acting in a way that is in line with your own best interests.
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.
In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.
His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.