Asset Planning, Inc Blog

The latest from the team.

Reasons Why People Put Off Saving for Retirement

Retiring comfortably is a dream for most people. Unfortunately a lot of people are not adequately saving for their retirement or, even scarier; they are not saving at all. What is preventing them from saving? Usually it’s a mind block that gets in the way. Retirement seems too far off to think of or it’s uncomfortable to talk about. Here are a few reasons that most people delay saving and some tips to overcome these excuses.

Paying off debt and paying for current living expenses - With a lot of people burdened with a mound of student debt after college and paying for current living expenses, the idea of putting anything extra towards retirement savings can seem daunting. While it is important to pay off your debt it is also important to save for your future. Even the smallest amount that you can spare is better than nothing at all.

Instant Gratification- Spending money on items or trips that you want to go on now is highly more satisfying then putting money into a retirement account that you can’t touch for a long time. Sure everyone loves a new purse or a shiny new set of golf clubs. But one thing to ask yourself; are these items worth my future financial security?

Unsure of where to start- A big reason people put off saving for retirement is that they do not know how to get started. There are also many online resources that offer retirement calculators and tips to guide you through the process. You can also contact a financial advisor to help you assess your retirement needs and set up a customized plan to get you started on the right track to a successful retirement.

Procrastination- The mindset of “I’ll do it tomorrow” and then never actually doing it can be one of the biggest disadvantages off all to your retirement savings. Most people do not understand the concept of compounding interest when it comes to savings. Basically, the sooner you start saving, your principal will not only earn interest but over time you’ll earn interest on top of previous years interest and therefore the compounding effect can be huge. If you put off starting to save until you are in your 30s instead of starting in your 20s your money will miss a decade of compounding. The end result is you will have to save significantly more money every month to get to your desired retirement goals then if you had started earlier. The easiest way to get started is through your company if they offer a 401k plan or by setting up an IRA account. With both of these options you can have contributions set up to automatically come out of your paycheck or account. The less you have to think about it the more likely it is that you will do it.

The bottom line is that there are a lot of excuses that people make as to why they can’t save for retirement. The sooner you get started, no matter how much you start with, the better. When you get ready to retire you will not regret taking those first steps you made to invest in yourself and your future.

Continue reading
  1360 Hits
1360 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
Retirement Contribution Limits phishing sites Social Security Administration VOIP landline phones donation counts partner /owner home emergency kit July 6 business hours documents ice cream event insurance policies fees emergency kit wells Fargo Facebook profile Orange County CFP ® tax deadlines app gap insurance disaster areas birth certificates September 9 retirement planning checklists family members cell phones student loans Puerto Rico integral member clients show support cell phone SIM swap scam text messages Medicare question policy Roth IRA memorial Day weekend car loans house sitter Amazon notary services self-help topics CARES Act trustee cell phone carriers borrowing money money IRS team members flash drive Wells Fargo customers identity thieves scams tax returns fun atmosphere Victor Dergunov illiegal robocallers Asset Planning card reader email notifications April 15 Part D premiums . clients earthquake app October 1 2020. investment statements Federal Trade Commission website pet cell phone carriers offer Kiplinger Letter tax deadline retirement plans Coronavirus Aid tax filing deadlines debt assets prescription eyeglasses IRS deadline banking Erin Nelsen operations manager home security web address blog post information Facebook Two-Step Verification January 10 https :// relief efforts Labor Day consumer spending clone counterfeits life saver retirement accounts Notary Public spam phone health care services Medicare Advantage coronavirus jury duty fun facts Independence Day offering insurance emergency folder Supplemental Security Income news coverage April 18 2017. September 8 portal Mobile Banking Security Tips September 30 2020. paperwork clutter rescue organizations interest rates president Trump California Lions Friends Medicare Part B premiums items COVID -19 virus Ice Cream Social D premiums privacy settings Flexible Spending Account Kraig Mathias company 2017 Equifax breach “ skimmer ”. February 14 https ://seekingalpha July 3 rd Economic Security July weekend years Open Enrollment holidays approach Open House increase Shred paperwork driver license pet supplies summer tax records estate planning direction bottom line drive /usb parking spots market turmoil Part B spring cleaning check lists emergency kits EEChecklist-Kits.pdf stockpilingchecklist.pdf water … April 11 2017 TD Ameritrade National LINC Conference vacation Orange County Superior Court home executive order client portal cell phone provider Fox News story 20 year anniversary asset Planning vision screening Healthcare phone companies June 29 health care costs Joey Gonzales records account numbers phone stimulus package 2017 IRA contributions Medicare Part B CERTIFIED FINANCIAL PLANNER exam chip-enabled EMV cards Charles Schwab Treasury Department estate planning pet donation drive privacy notices spread credit card fraud cell phone service provider hurricane Dorian 900 number home break-ins Medicare plan credit freeze 23 andme credit monitoring service settlement options non-prescripstion sunglasses estate pet industry home emergency preparedness kits markets official certification 401K paper records retirement information Medicare trust 70 1/2. tax season interest pets DNA test kits July 4 contribution limit Financial Planning Magazine media accounts phishing scams Wells Fargo employees earnings fallout breach opt-out FEMA website Auto insurance 2018 IRA contributions stock pile donation items Legal robocalls Brexit vote National Ice Cream month payments ice cream identity theft toilet paper ID card credit cards home mortgages TD Ameritrade insurance policy Social Security padlock IRA accounts 4 pm -8pm credit card company people medications Affordable Care Act FSA credit score CA FTB Expired medications