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
  637 Hits
637 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
Roth IRA emergency folder Healthcare https ://seekingalpha July 4 fun facts jury duty IRS deadline retirement accounts executive order home security policy Kraig Mathias account numbers privacy settings home mortgages IRA accounts emergency kit credit card company illiegal robocallers official certification contribution limit money tax deadline trust Orange County information Facebook Auto insurance CERTIFIED FINANCIAL PLANNER exam bottom line FSA 401K car loans assets paperwork clutter Medicare question client portal Flexible Spending Account credit cards 4 pm -8pm Notary Public April 18 2017. Social Security Administration Victor Dergunov Medicare Part B fees pet industry clients show support 23 andme retirement planning health care costs Supplemental Security Income credit card fraud gap insurance April 11 VOIP landline phones 2017 IRA contributions National Ice Cream month consumer spending phishing sites summer card reader Shred paperwork California Lions Friends Amazon spring cleaning Independence Day Fox News story Part D premiums . home Puerto Rico president Trump Wells Fargo employees DNA test kits credit score Treasury Department Legal robocalls clone counterfeits identity theft 70 1/2. phishing scams notary services tax season ID card relief efforts banking Open Enrollment Part B memorial Day weekend documents FEMA website Affordable Care Act trustee asset Planning Social Security rescue organizations pet supplies vision screening 2018 IRA contributions debt Orange County Superior Court earthquake app Brexit vote insurance policies April 15 identity thieves June 29 non-prescripstion sunglasses chip-enabled EMV cards padlock increase parking spots 20 year anniversary wells Fargo Kiplinger Letter insurance policy credit freeze investment statements interest rates Mobile Banking Security Tips opt-out “ skimmer ”. retirement plans D premiums October 1 2020. Wells Fargo customers flash drive Open House estate privacy notices pets portal home break-ins prescription eyeglasses birth certificates disaster areas Medicare Part B premiums clients pet https :// ice cream event Two-Step Verification house sitter retirement Retirement Contribution Limits web address vacation borrowing money driver license Medicare 2017 TD Ameritrade National LINC Conference drive /usb Facebook profile estate planning