The Good Enough Retirement Savings Plan

When you are young, it never crosses your mind that one day, you will not be able to work, and the money in your bank account represents all the employment income you will ever have.  You keep focusing on building your resume for that well-paying job somewhere in the future, while also spending some of your attention on getting enough money this month to pay this month’s bills.  Time passes quickly when you are in the workforce, and before you know it, you are in your 50s, and you can count the number of paychecks you will receive by the time you reach retirement age.  Suddenly, the phrase “retirement crisis” starts to make sense.  You worry if there will be any Social Security money left by the time you start collecting it.  Everywhere you look, the employees seem older and more tired.  The Walmart greeters move more slowly than before, and you start to understand that they are not just there for the social interaction.  You imagine a future where you work as a Walmart greeter at age 80, because your Social Security check will not be enough to buy Sam’s Choice cola from the vending machine.  The good news is that you may not need as much money for retirement as you think you need, and if you are thinking about it this early, your finances are probably in better shape than you think they are.  A Dade City estate planning lawyer can give you a dose of reality.

If You Started Saving Early, Don’t Stress

You are doing better than most people if you have an employer-provided retirement account or if you have been putting money into a personal savings account and not taking it out.  Those lessons that you learned in high school about compound interest are paying off.  In fact, if you want to take a break from contributing to your retirement savings, you might be able to afford to.  If, this year, you do not contribute anything to your retirement account beyond your employer’s contribution, the money you have deposited in all the previous years, as well as the interest it has already generated, will continue to grow.  If it will make you feel more financially secure, use the money to pay down debts or make a down payment on a house.

You Can Retire Even If You Are Not a Millionaire

Don’t let numbers, especially big numbers, stress you out.  People often say that one million dollars is the amount of savings you need to retire, but this is an oversimplification.  Everyone’s situation is different.  If you have a paid off house, then Social Security income and a reverse mortgage could be plenty, even if your own retirement savings are meager.

Contact a Florida Estate Planning Attorney About Living Simply in Retirement

An estate planning attorney can help you put your retirement plans into perspective.  Contact The Law Office of Laurie R. Chane in Dade City, Florida to discuss your estate plan.

Source:

housingwire.com/articles/despite-financial-insecurities-retirement-may-be-relatively-attainable-forbes/