The savings habit needs to start at a young age
Just start saving…
Written by R. A. Stewart
The amount that you need to fund your retirement is a personal topic and varies depending on personal circumstances.
So often we hear financial people saying that you need this or that to fund a decent retirement. They come up with figures of what the average person needs.
These figures are all based on assumptions.
Different experts arrive at different calculations as to the amount needed in retirement because they make different assumptions.
These figures are based on averages but they do not take into account investor’s differences and where we each have our own goals and interests.
Then there are assumptions on how long we are likely to live after we retire and I am not suggesting for one moment that you should stop working when you reach a certain age.
There are factors such as housing needs, inflation, return on your investments, and longevity which are important things to consider when trying to work out how much is requirement in retirement.
There has to be a life balance in all this. It is no good just staying at home during retirement only to leave your money to someone else when it is your time to go.
People are different and everyone’s personal circumstances are different therefore it is not helpful to treat everyone the same way. Your retirement plan needs to be one that takes into account your personal circumstances.
Before you even contemplate using a financial advisor you need to map out your financial goals first because no one can point you in the right direction unless you know where you are going. It is similar to purchasing an airline ticket. The ticket seller cannot help you unless to tell him or her where you want to go.
In a nutshell, set goals for your money or your money will develop a mind of it’s own and do it’s own thing.
When setting goals set priorities for your money. Obviously your basic living costs are number one priority then comes things such as debt, if you have any and savings.
Your personal situation must be factored into your calculations. There is no size fits all.
I don’t think anyone ever had any regrets that they belong to a retirement scheme of some kind. In New Zealand this is called Kiwisaver. Forget about what the experts are saving you need for your retirement fund and just start saving. You will be better off in the long term than if you just frittered away the money.
The reason why there is so much inequality in the world is because people make different choices and the result of different choices is different outcomes. It is important to take responsibility for your own choices and not blame the government all of the time. Focus on what you can do to improve your financial situation. If you don’t like the government you always have the option of voting for the opposition at the next election.
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Note: This article is of the opinion of the writer and may not be applicable to your personal
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