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 Making Sense out of Dollars

Planning for Retirement

Part 1 of 3

Joel Lerner
Posted 5/20/22

I have read of five emotional stages that people will go through before and during retirement:

Imagination. About 10 years before retirement, you begin to dream about that period of leisure …

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 Making Sense out of Dollars

Planning for Retirement

Part 1 of 3

Posted

I have read of five emotional stages that people will go through before and during retirement:

Imagination. About 10 years before retirement, you begin to dream about that period of leisure life.

Anticipation. A few years before retirement you begin to realize what a different lifestyle you will be entering into. This is a period of both excitement and worry.

Liberation. The first year of the period of retirement allows you the free time to read, travel, reconnect and plan.

Reorientation. The honeymoon year is over and it’s time to settle in and realize that the vast amount of time you have on your hands and how costly retirement can be.

Reconciliation. Now is the time to reflect and learn what you can and cannot do both physically and financially.

How Does Early Retirement Play a Role in the Various Retirement Plans?

There is a story of a beautiful bird that was powerful and free. It had magnificent colorful plumage of which it was very proud. One day the bird decided to pluck its feathers, one by one, in order to make a nest in which it could rest in comfort and security now it cannot fly.

Don’t consider retiring until you are both financially and emotionally ready. Why? Because people have not been properly prepared for retirement in America. We spend a third of our lifetime preparing for a career but almost no time in preparing for the period afterward.

Why Should You Plan Ahead for Retirement?

Because of the medical breakthroughs that have allowed us to live longer, retirement can be as long as 30 years. Your income from Social Security and pension may not be enough to cover your lifestyle during your retirement. About 38% of all workers had traditional pension plans 35 years ago. Today that number has shrunk as employers continue to reduce their fringe benefits and the workforce has taken a different view of working. Yet people are not saving enough to bridge the gap as COVID kept them from spending but now they’re on spending sprees. Add taxes and inflation to this picture and you will understand why planning ahead is so important. Remember that you fix the roof before it rains.

Thought For The Week

Money never changes, only pockets.

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