Will You Outlast Your Money?
A couple days ago, I was getting my morning caffeine fix (I LOVE a good cup of coffee) while reading the daily financial news, and I stumbled across an article that gave the reason the large majority of people will retire poor (or “Outlast Their Money”)…
… and how to avoid ending up in that category.
It said stuff like, “26% of Americans have $1000 or less saved for retirement.”
and…
“…that 54% of people in the United States have less than $25,000 saved for retirement.”
(if you are in your 20’s, that might sound like a lot… but think about it if you were 30, 40, or even 50. A measly 25 grand isn’t exactly going to help you retire in a beachfront condo with a shiny new Beamer in the garage waiting for a spin around town.)
So over a quarter of our nations population isn’t seriously planning for any kind of retirement. Another 54% of the population has started planning but won’t have near enough. The point is that a massive portion of our population is incredibly under prepared financially for their future.
That is downright scary…
The article said that there are two reasons:
First, people don’t get sound financial advice. Because I talk to so many people on a daily basis, I have seen this to be all too true. Some people don’t know where to go to for help, so they just end up sitting on their hands…. Others listen to EVERY commentator and financial “Guru”, and quickly get overwhelmed. Both types of people end up doing the same thing: nothing.
Second, they can’t stop spending. They can’t tell themselves “no” when there is some new trinket they want. Unfortunately, they will be telling themselves “no” for their whole retirement because they can’t afford much.
But unlike what the article suggests, the solution is not just to stop spending and start saving. While those two things will help stop the bleeding, they won’t help anyone achieve a retirement with freedom and wealth. It is missing a crucial component.
Anyone facing a more meager retirement than they hoped needs to make their money work harder. Their money should be bringing in reliable and dependable monthly income… instead of appreciating at a low rate of return in a basic savings account.
Options trading is how I do it. And it is how I am preparing myself up for a pretty sweet retirement.
What about you? Will you outlast your money? Or, will you make it work hard to bring in income for your whole life… even in retirement?
Until next time,
Jeff Z
One Response to “Will You Outlast Your Money?”
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Good but worrisome situation as you described in the the above. I’m working on a good retirement by saving and investing. Been doing covered call options for years now, but your course on Credit Spreads has opened up new roads to an even better retirement. Just wanted to say thanks.