Saving for Retirement ? a Decision Point
Wednesday, 14. July 2010
Most financial planners based their reduced income calculations on the premise that retirees don’t require as much income as they did while working. The fact is, however, retirement income needs are likely to rise with age as health care needs grow. Seniors are living longer. Prices for important consumption items of seniors, such as prescription drugs and long-term care, have risen. While the consumption of other items may decline for retirees, it seems entirely reasonable to think that health care cost increases will more than offset those predicted declines. And if retirees are able to pay off their mortgages during their pre-retirement years, away go the mortgage interest deductions, their number one tax “shelter”. So are their taxes really lowered? For many homeowners, they are not. The sad thing I’ve discovered is that most of us do not believe that we have the power or ability to choose to have more wealth in our lives. I felt the exact same way.
Please believe me when I say that financial planning is a really, really good tool but it alone is not enough to move you to financial freedom. Also believe me when I say that planning in and of itself is not the problem. To put it bluntly, YOU NEED MORE INCOME. Rarely does working on a paycheck-to-paycheck job helping someone else live their dreams allow you to live yours . Saving for retirement is a tough assignment for most people, not to mention reaching financial independence. As Robert Kiyosaki, author of Rich Dad Poor Dad, and real estate tycoon Donald Trump both have said: “To reach financial independence, you need to have multiple streams of income.” They both have also said that network marketing is the way they would advise the average person to develop those income streams.
You’ve now reached another decision point. You must decide whether you will remain in your present financial status or make a change and move toward more wealth. If you choose not to make any changes in the financial direction of your life, that’s perfectly o.k. with me. I know how difficult it is to make any kind of changes in your life. To paraphrase an old physics theorem: A body at rest tends to remain at rest until put into motion by some force. Habits are hard to break, especially when so few of us even readily identify more than a handful of the hundreds of habits we’ve formed.
If your choice is to desire more wealth in your life and you are willing to put in the work to attract it, congratulations. I’m not talking about any “get rich quick” scheme. I’m talking about committed, sustained, purposeful work. Think about your decision for the next few days, and if you are truly ready, we’ll get started in the next article.
Remember, you do not have to live on less in retirement. No matter where you are right now financially, you can build and enjoy a Million Dollar lifestyle retirement. Peace.
Harold L Lowe retired at age 62 when his six-figure income position was eliminated. He shockingly found a 50% reduction in his (combined pension and Social Security) income. He?s since learned that income reduction is faced by most paycheck-to-paycheck employees. You can get a copy of his Free, eye-opening Report ?Financial Planning for Retirement is not Enough!? at http://www.haroldllowe.com.