Saving for Retirement?
One of the contractors that I work with brought a financial planner into their annual safety meeting. The guy was way too excited about breaking down financial things for the audience, but that's his job, right?
I saw the doubting looks on some of the faces gathered before him as he spoke of saving a portion of their weekly income for things that people might need down the line...like food...and a place to live.
"We all have choices to make," the planner said. "There are people who are living completely underwater, choosing the newest model of phone over their peace of mind in their retirement years."
As is apt to happen in such circumstances we often break it down to our own capabilities to withstand the years ahead when we are supposed to be fading off into the sunset.
A very well-thought out guy stood up and asked a few questions.
"How much money do you think, on an annual basis, after the age of retirement, will we need to have set aside to survive?"
The planner hedged a bit.
"The retirement age has changed in recent years. Life expectancy is 84 years for the average male."
The guy sitting next to me touched my shoulder.
"I only have about 18 years left," he whispered.
"I saw you eat lunch," I whispered back. "You can probably take ten years off of that."
He didn't laugh.
"People are looking to retire at 65, but in all likelihood it is more like 70," the planner said.
"Ugh, 22 more years," I said.
"What're you bitching about? I'll be dead by then," whispered the guy next to me.
"For about 15 years," I whispered back.
"You'll need quite a nest egg for a period of 14 years," the planner said. "The uncertainty of the social security program is the real wild card here so if you are not heading off into retirement with about four or five hundred thousand dollars in the bank, for that span of time, you'll most likely have problems."
I laughed.
"What's funny?" the guy next to me whispered.
"It'd probably be easier to die than to try and save half a mil."
"Especially when you only have four years to do it," he whispered back.
The financial planner talked about putting ten bucks a week aside out of each paycheck.
"That's 520 bucks a year," I said. "In 400 short years you'll have what you need."
The old guy next to me tossed an elbow.
"I'm gonna' have to find a bag of money on the side of the road," he whispered.
"A big bag," I answered.
The financial planner spoke of making sacrifices.
"Your 12 year old kid doesn't need a smart phone. You don't need to eat at a fancy restaurant once a month. You don't need every single pay channel on the television. Those retirement years are going to come up fast."
I thought of the high cost of educating the kids. The $600 a semester for books puts you under water on the ten bucks a week you've saved.
I considered that having my wife handle the finances is a good thing, but I also considered that twenty years passes quickly. I was comforted by the fact that I work with a good company who has thought of the future for me.
Yet how much would I truly need?
I thought about green fees and the rent for the condo next to the golf course.
"I just want to play a few more rounds of golf," I whispered.
"You're too crippled to play now," my buddy whispered back.
"Good point."
"Perhaps it would be more prudent to go now," my buddy said.
We both laughed.
The planner turned to face us.
"It's really not a laughing matter," he said.
Set aside ten bucks a week.
That is kinda' funny.
I saw the doubting looks on some of the faces gathered before him as he spoke of saving a portion of their weekly income for things that people might need down the line...like food...and a place to live.
"We all have choices to make," the planner said. "There are people who are living completely underwater, choosing the newest model of phone over their peace of mind in their retirement years."
As is apt to happen in such circumstances we often break it down to our own capabilities to withstand the years ahead when we are supposed to be fading off into the sunset.
A very well-thought out guy stood up and asked a few questions.
"How much money do you think, on an annual basis, after the age of retirement, will we need to have set aside to survive?"
The planner hedged a bit.
"The retirement age has changed in recent years. Life expectancy is 84 years for the average male."
The guy sitting next to me touched my shoulder.
"I only have about 18 years left," he whispered.
"I saw you eat lunch," I whispered back. "You can probably take ten years off of that."
He didn't laugh.
"People are looking to retire at 65, but in all likelihood it is more like 70," the planner said.
"Ugh, 22 more years," I said.
"What're you bitching about? I'll be dead by then," whispered the guy next to me.
"For about 15 years," I whispered back.
"You'll need quite a nest egg for a period of 14 years," the planner said. "The uncertainty of the social security program is the real wild card here so if you are not heading off into retirement with about four or five hundred thousand dollars in the bank, for that span of time, you'll most likely have problems."
I laughed.
"What's funny?" the guy next to me whispered.
"It'd probably be easier to die than to try and save half a mil."
"Especially when you only have four years to do it," he whispered back.
The financial planner talked about putting ten bucks a week aside out of each paycheck.
"That's 520 bucks a year," I said. "In 400 short years you'll have what you need."
The old guy next to me tossed an elbow.
"I'm gonna' have to find a bag of money on the side of the road," he whispered.
"A big bag," I answered.
The financial planner spoke of making sacrifices.
"Your 12 year old kid doesn't need a smart phone. You don't need to eat at a fancy restaurant once a month. You don't need every single pay channel on the television. Those retirement years are going to come up fast."
I thought of the high cost of educating the kids. The $600 a semester for books puts you under water on the ten bucks a week you've saved.
I considered that having my wife handle the finances is a good thing, but I also considered that twenty years passes quickly. I was comforted by the fact that I work with a good company who has thought of the future for me.
Yet how much would I truly need?
I thought about green fees and the rent for the condo next to the golf course.
"I just want to play a few more rounds of golf," I whispered.
"You're too crippled to play now," my buddy whispered back.
"Good point."
"Perhaps it would be more prudent to go now," my buddy said.
We both laughed.
The planner turned to face us.
"It's really not a laughing matter," he said.
Set aside ten bucks a week.
That is kinda' funny.
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