VOL. 132 | NO. 204 | Friday, October 13, 2017
Rays of Wisdom
Dana and Ray Brandon
The Magic Numbers
Ray and Dana Brandon
Ray’s Take: Saving for retirement doesn’t just happen by accident. It takes meaningful thought, discipline, and action to create and execute a plan that will sustain you in your golden years. Yet, according to the Employee Benefit Research Institute, only 18 percent of U.S. workers say they are very confident of having enough money to live comfortably during their retirement years. There seems to be a big disconnect going on between knowledge and execution.
Adding to that mix, the shakeup of the markets in 2008 shook up a lot of existing retirement plans. Many investors found they couldn’t stand as much risk as they thought they could and made some costly mistakes. That led to postponing retirement for many Americans. Many of them were too heavily invested in stocks and hadn’t adjusted their mix as they approached retirement.
Many people think they will just work longer to make up for any shortfall they discover in their retirement funds. And it makes perfect sense that people would think that since we’re all living longer and in mostly better health. After all, 70 is the new 50. Right? But, for any number of reasons, this may not work out. Unfortunately, this thought process ignores the reality that unemployment rates for those older than 50 are increasing faster than for any other group.
So, how do we find the magic numbers and the way to execute that plan?
Solid retirement planning is the best thing you can do for yourself. Diversification. Adjusting your mix as you get closer to retirement to help protect the funds you’ve saved. Lose the emotions when it comes to your money. Emotion makes for a bad partner when it comes to your retirement plan. A cool head is a big asset.
Planning for a sufficient nest egg may seem to be an intangible retirement savings goal. Trying to set benchmarks along the way, based on your age and earnings, might be more realistic. A good financial planner can set you on your way to achieving your goals.
Dana’s Take: It seems like everyone is looking for magic, the magic amount of money that will make retirement living easy. For most of us, that amount is simply more than we have now.
Today, I spoke with a teacher who is looking into multiple work options after she retires from teaching. She is aware that her retirement fund isn’t adequate for the rest of her life, so she is starting to plan the next chapter. I admired her openness to new work opportunities in midlife.
To make retirement living easy, you must have a solid plan in place and stick to it. Magic does exist, but it’s in the smile of your child, the joy in your life and the blessings of each day.
Ray Brandon, CEO of Brandon Financial Planning, and his wife, Dana, a licensed clinical social worker, can be reached at brandonplanning.com.