Planning Ahead for Your Retirement

Planning Ahead for Your Retirement
Well, after one year you’d have $6,000. That’s a great emergency fund – or enough to eliminate smaller debts entirely. You could also put those $500 into a Roth IRA. If you did that for ten years with an annualized 5 percent return, you’d have over $75,000 in tax-free money for retirement!
Is there anything else?

When you are young, retirement is the last thing that you think about!

Retirement is for old people and not something to plan for!

Children grow up thinking about getting a job, having fun, having relationships, having a family - all too soon, life passes by and people typically only start thinking about retirement when they are getting close to it.
 There is an expectancy that either the government welfare system will provide for you in old age, or any work related pensions will be sufficient to see you through. 

The reality is that things have changed and that is no longer the case.



People are living longer
In the Early centuries, Unhygienic living conditions and little access to effective medical care meant life expectancy was likely limited to about 35 years of age. That's life expectancy at birth, a figure dramatically influenced by infant mortality—pegged at the time as high as 30%

The current life expectancy for U.S. in 2020 is 78.93 years, a 0.08% increase from 2019. The life expectancy for U.S. in 2019 was 78.87 years, a 0.08% increase from 2018

Now some scientists believe the first human to survive to 200 or beyond may already be alive somewhere on the planet. ... Yet until recently, scientists thought there was a natural “ceiling” on human existence of about 120 years, beyond which the body could not cope

The time to plan for your retirement is NOW!
So as people are living longer, there is increasing pressure on the government, health and social care systems.

Over 53% of adults are at risk of not having enough money when they retire. 

The perfect time to start planning your future, is when you are young enough to start understanding the concept of money - older children and teenagers. Parents can have a central role in supporting their children to understand about the value of money and how to make money work for them. 

However, even if you are in your 50,s and 60,s, there is still time to put things in place. 

Without the right plan - you could end up in poverty

So what can you do?

Suze Orman is an American and in the Forbes Top 100 most powerful women list. 
in her book The Ultimate Retirement Guide for 50+ (2020), suze talks about changing spending habits such as Downsizing or buying a cheaper car and making it last for 10 years instead of buying a brand new car every 3 years, She goes on to explain about the importance of using those savings to invest in the retirement plans and the Stock Market 

She explains, that if you plan on working for another ten years when you take the plunge and downsize which reduces your housing costs by 25 percent, you may have $500 to spare each month. What could you do with that? 


In the UK, there is an opportunity to make the most of your ISA, which is tax free. This can be also be  turned into a Stocks and Shares Isa, and invested in the Stock Market for long term tax free investment. 

What Suze does not cover, is all the other strategies that can be put in place.
Utilising the stock market is a great strategy but not the whole picture.

The wealthy know that there are many other ways to make your money work for you - such as property investments, ecommerce, network marketing, royalties on writing books and music etc.

What about Mind Set?
Learning the right knowledge is one thing but you need to develop the right mindset too. 
Having the right mindset is essential and is another learnt skill.
Luckily - it is another skill which can be learnt at any age!

The Whole Picture
So, take the decision TODAY, to start planning for your financial future. Whether you are young or have life experience, the time to start is NOW!
Learn the skills of the wealthy - learn about money management, and mindset.
Consider the whole picture. 
It may feel daunting but just take one step at a time and commit today.

Contact me to discuss the right steps for you to take!

To Your Success!

Kate