Have You Planned for Your Retirement? Part 1

Many people think that in life we need to accumulate a certain amount of money to be able to retire. Some commercials ask, “What is your number? What do you need to save in order to retire?” I think that makes for a really good conversation, because retirement planning is on the minds of a lot of people.

Today we have so many factors that are making people aware of the need for retirement planning:

1. Interest Rates

Interest rates are very, very low, making it difficult for people to generate income for the rest of their lives.

2. Volatile Financial Markets

We are experiencing an extremely volatile financial market. We are coming out of, or are still in, what many call the Great Recession, and people are fearful that the market is going to go down.

3. Longevity

Longevity is creating even more risk for us because medicine, doctors, and technology are allowing us to live longer and longer.

4. Healthcare

Our healthcare system doesn’t take care of us if we are very, very sick and need long-term care. Our medical insurance plans and Medicare do not cover the cost of nursing homes, assisted living facilities, etc.

Add other determinants to those listed above, such as inflation and taxes, or things that we can’t control, such as unexpected emergencies and the cost of taking care of our children and parents – the only conclusion is that there is no exact number that is the correct number.

This is the perfect storm for retirement planning. There are, however, certain things that you can do to position yourself in the best possible way for retirement, and that is what I will talk about in Part 2 of this series.