I find that most people I meet are not sure how to invest in their retirement plan and they definitely don’t understand the choices being offered by their plan at work. This is why so many opt for a so called “Target date fund” that has a date near to their expected time to retire. Ah, if it were only that easy.
Has this question ever crossed your mind? If not, it should. Too often, folks just move to the automatic answer to this question; they tell me, “I save in my employer’s 401(k)” or similar plan. “If deposits can come from my paycheck, so much the better”; is a response I hear a lot as well. This answer is much better than not saving at all, but the question is whether this is the best way to save for retirement.
It sure can seem overwhelming, putting together a plan to retire. After all, it’s a long ways away….until it isn’t! I have been assisting folks in making that transition for nearly 3 decades and have learned a lot about what that means and how to make a successful transition to “the good life”.
Every year that goes by these days seem to be shorter. Life has become so busy, hectic and crazy for most of us that time seems to accelerate. I hope you have some time over the holidays to remember all the great things in your life and to just enjoy who you are and where you are at. I know how hard it is to take the time for those things like family, friends, hobbies and ourselves. I know how “caught up” I can get, to the point where it is easy to feel overwhelmed and out of sync.
Stockbrokers and most people who call themselves financial planners or financial advisors understand the wealth building process but have a difficult time converting those assets to the new reality of a retired person. Once retired, you can’t afford to lose capital, you need to keep pace with inflation, you must have a plan for the risks to your wealth (like health care and long term care costs) and you need the peace of mind that you won’t run out of money. Only then will you be able to relax and enjoy the retirement you have worked so hard to achieve.