Posted by Gail | Filed under Retirement Planning
Ask some people how they’re doing in the retirement savings department and you’ll hear, “Oh, I’m just going to work forever,” followed by a sigh. I am of the camp that believes the way to keep your brain healthy is to do something useful with it. But most of these people are simply referring to the fact that they don’t have a cent saved and they can’t ever imagine being able to hang up their spurs.
You might think that having to keep working would be really tough to take, but it isn’t a patch on having to work when you’re sick, disabled or plumb worn out. Relying on social assistance is one way of finishing off your life, but it isn’t the most comfortable way, not by a long shot.
I think it’s interesting that there are people who can’t seem to see beyond next Thursday. The lure of today’s needs forever overwhelm any though of tomorrow, never mind 20, 30, or 40 years from now.
An Imagineering exercise could help. Most financial advisors ask their clients to think about what they’d like their retirements to look like. But I want you to take a different tack today.
In a minute of so, I want you to close your eyes and imagine what your life will be like if you retire with only $20,000 a year to live on. You know what you make now. You know what you spend. Think. What will you be able to do if your income is only about $1,667 a month or $385 a week? Where will you be able to live? What will you eat? How will you get around?
You’re going to cast forward to those later years when you’re forced to live on social assistance and the pittance it will buy.
Okay, now, close your eyes and imagine.
The next time you’re contemplating dropping a bundle of cash on some non-essential item, ask yourself how many weeks of improved living you could have if you saved even a portion of what you plan to spend instead of spending every red cent you make on STUFF.
That might help you see past Thursday.