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
  1003 Hits
Tags:
1003 Hits

Search Blogs Module

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