It seems these days, it's so easy to buy virtually anything you want: the obvious thought is Amazon. Going further, who ever thought you could buy a car online and have it delivered right to your driveway? It used to be services and products would be plentiful via TV commercials: now, you can find anything you want on the internet and shop 'till you drop without shedding your pajamas. But how about the one thing we all strive to achieve... a comfortable retirement- can you buy a comfortable retirement? What's the price of the ability to stop working and continue to live in the manner you've grown accustomed to?
An article Olivia, our resident Millennial wrote for our newsletter (www.chestnutinvestment.com) about the difference between how our generation (yes, you know who you are) and the millennial generation think concerning attitudes toward retirement planning spanning the generations would indicate that retirement could be financed just by purchasing a lottery ticket, or waiting for the previous generation to pass to provide the necessary funding to retire. Seriously- in some survey we read 67% of the millennial generation believe this. Really- so live for today, for tomorrow will be taken care of, they assume... and you know what they say about the word assume. So, in order to retire comfortably and financially secure you have a choice- wait for your parents to depart this earth, win the lottery, or prepare throughout your working career to be ready. Which methodology do you think is the most secure and reliable?
The definition of retirement is different for everybody. To me, it's rather simple: the ability to do what you want, where you want, when you want. Simple. It's not very complicated, but it does take some preparation, as most of you know. The days of putting in your 30 years, getting a gold watch and leaving work with a pension to support you for the duration of the reminder of your life is over. Corporations have ceased to offer this types of retirement preparation. With extended lifespans due to better diets and medical breakthroughs, folks are living longer than the companies, municipalities and other pension providers projected breaking their bank of monies saved to support those who pledged their allegiance to the provider. So, that leaves people the obvious choice- prepare financially for your retirement or work until the day you die... or have it kill you, whatever comes first. Depending on winning the lottery or having your parent's wealth to support you in retirement is rather dicey- if neither comes through, retirement disappears in a puff of smoke. Our Government recognized this many years ago, providing the tools to us to save throughout the years via a 401(k), IRA's in various types, self-directed pension plans, tax sheltered retirement programs and the like. The one thing however, that they don't provide is the actual funding... the money! That component is up to us. You can simply fund your retirement in one deposit- not likely- or slowly and carefully plot out how much is needed each week or month and year to have that nest egg ready to go so you can retire as you plan. Retirement planning is complex and takes thought, time and a plan. If you wait until the time of retirement and hope you'll have enough money to live comfortably, be prepared to be unprepared. Having more than you need is a wonderful way to go... having less can put a huge crimp in your plan. Keep making those deposits, work with your Certified Financial Planner™, and don't let those golden years turn to lead.