I recently read an article discussing how a 50 year old wishing to retire at age 65 may have to “save, save and save” to ensure they amass enough assets to last the remainder of their life. The author called this “the 15-year sprint to retirement.” This is even truer for those with little saved to this point and needing to catch up.
The good news is that all is not lost if one finds themselves in this spot. The answer may be working a few more years, partially retiring, or spending less than previously planned. In addition, one wouldn’t have to tackle this alone. I’m happy to help develop a solution.
However, it’s much easier to achieve your financial goals if you start saving and planning on the other side of 50. In a study of Americans over 50, those who stuck with their plans achieved an average total net worth three times higher than those who didn’t plan!1 This stat holds little value for those already over the 50 year hump; they are already in one camp or the other. The ones who can benefit are those with decades left in their careers who develop a plan now. And then stick with it.
Sticking with a plan doesn’t mean you follow it blindly with no adjustments. Financial planning is an ongoing process, not a one-time event. The markets will change, your goals will change, and you will change as a person. Sticking with a plan means proactively adjusting it as these changes occur.
1Lusardi, Annamaria, and Mitchell, Olivia S., “Financial Literacy and Planning: Implications for Retirement Wellbeing,” May 2011, page 29.
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