Close your eyes and envision how you will be spending your time when you are 65, 70, or 75 years old (for some of you that will not be hard!). What do you see?
When I have this discussion with people, it is becoming much less common to hear about walking away from their job for a life of golf, TV, and bridge games. More often, the conversation steers toward working with a non-profit, consulting part-time, teaching, or even starting a business around a passion or hobby.
Yes, Baby Boomers are taking the term “retirement” and making it their own. How can you get and stay motivated to save much for the future if you envision yourself with some sort of income until the day you die? Simply put, because life happens. What does that mean?
- You may be unemployed. I recently read a statistic that 70% of employed Americans plan to work beyond age 65, but only 28% of current retirees actually did. They were no longer working due to factors beyond their control – health problems, layoffs, or family obligations.
- Plans change. Think back 10-20 years ago. Did you have a clear picture of what life would be like today? (if you did, contact me – I could use a good oracle). You may decide that you want something completely different to fill your remaining years, and that may take more money than you thought.
- The power of “walkaway freedom”. I recently read this term in a financial planning publication discussing this subject. You could call it “financial independence” or “financial freedom”, but they all refer to the day when you no longer work because you need the paycheck. If you decide you are fed up with work, you can walk away and still maintain your lifestyle for your remaining years.
Now close your eyes again. Envision having enough money set aside to support your family even if you cannot work anymore, to give you flexibility to change your mind, and to give you the power to choose to work or not.
THAT is why you should get started on a solid path, regardless of your age! This is what I want to work toward with my clients.
Who do you know that might enjoy re-framing their mindset on saving for the future? Be sure to share this with them!