Retirement, how many people really want to hear the truth
We have been trying to help people outside the normal realm of helping them get approved forcredit,
or get the score they need. We feel it is our obligation to help them further.
However we find a smaller percentage willing to go beyond the first steps.
This is extremely concerning. Think about this, you might enjoy reading up on new information,
but are you really serious enough to do something about your future.
I want to start with a sad story of a couple our firm advised 15 years ago. We helped them achieve
high 600, 700 scores. They got approved, and came back to thank us and take our staff out for a nice dinner.
During the dinner I asked them if they were ready to take the next step.
I will never forget what they said "no, we just really wanted to get approval for the re-finance,
but we are grateful for helping us achieve the score we needed
to get approval".
It really took me back.
But, I took it a step further and asked them if they are really serious about that statement,
I think they took it as an offense. But they knew there were other problems, too much debt,
not enough retirement money, not any savings, and other financial issues facing them.
I apologized, but I was firm and explained, my passion to help people and coach them.
They thanked me and we finished a wonderful meal, and we went our separate ways.
I asked them to seriously think about it. Today these people are in a different phase
of their life. They called last month to explain they lost their home, due to financial problems.
They were moving in with their parents. They barely had enough to survive and they
wanted help. However when I explained what they need to do, it was too much for them.
This was a couple facing more public records, lawsuits and they were not willing to
even get rid of their $250 / a month iPhone plan and cut down on their expenses to
This alarms me, many people are not serious enough to plan ahead, and take things as
they go. They want a quick escape from financial reality , quick fixes, but not serious work. Well not everyone is this way, but I hope by
sharing this story, it will do something to listen to our coaching and take the first 6 steps ,
and then work toward step 9.. it really is a process but we broke it down like that so people
could handle the transition and financial makeover.
So let's talk about one big area, retirement.
In retirement, there might be some confusion between households and person/population.
So let me explain.
Households verses persons who have enough retirement savings
Households - 56% of households have more than $100,000 saved for retirement, still not
merely enough to survive retirement. There are 123 million households in the US, 68 million
with more than 100K 55 million households with less
People - 57 % of people have less than $25,000 saved for retirement , not enough to survive one year much less a full 20-30 years retirement. There are 318 million people living in the US. 181 million with less then $25,00 saved.
Now have you paid into social security? Depending on your situation you might of not paid much. The Social Security Admin
statistics are skewed. They are not correct, do not believe them.
Only 65% of people retired actually receive benefits. Combine that with medicare and medicaid costs, the actual amounts are severely low.
The average yearly amount paid out is around $10,211 a year. That equals less than $850 a month to survive on.
25% of retirees have other sources of income from pension or 401K. The average is about $9,000 per year. If you have a pension
Those who can't generate enough money to retire well though Social Security, pensions, or savings and investments are increasingly choosing to stay in the workforce at least part time. "If their portfolio, their investments, their savings that they have accumulated to retire with are not enough to provide them with the lifestyle that they want in retirement, then a
part-time job is certainly something that they should consider," says Ken Moraif, a certified financial planner for Money Matters in Plano, Texas. "If you are 60, you could work for another 10 or 15 years part time to generate some income."
Some 22 percent of people continue to work during the traditional retirement years, earning a median of $25,000, the highest amount of any income source, AARP found. The proportion of income retirees earn by working has doubled from 15 percent in 1990 to 30 percent in 2012. "For people who are working, it is a very significant source of their income," Koenig says. "We
anticipate that earnings will become a growing source of income for older Americans."
Depending on your health when you reach retirement age, will you be able to continue to work?
Another factor that people facing retirement do not consider is medical costs. A 65-year-old couple retiring this year will need an average of $220,0001 (in today’s dollars) to cover medical expenses throughout retirement. Depending on their situations, they may need more, with rising cancer and other health problems.
Most people don't consider these things until they reach their 40's way to late, but yet even this late, in a couple years they can be back on top of things
Ideally you should start in your 20's but no matter what the age , we can coach you to planing a successful and fruitful retirement in about 1-3 years. The secret is explained here: Are you ready to find out more : http://goo.gl/TAUPB9