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
  685 Hits
Tags:
685 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
spring cleaning Healthcare ID card Affordable Care Act car loans Wells Fargo customers Shred paperwork 20 year anniversary October 1 2020. spam phone asset Planning Open Enrollment National Ice Cream month July 4 official certification relief efforts April 15 credit card fraud consumer spending Victor Dergunov Kraig Mathias D premiums Treasury Department “ skimmer ”. Orange County blog post phishing scams home security CERTIFIED FINANCIAL PLANNER exam FEMA website Flexible Spending Account money interest rates vacation Roth IRA tax season IRS deadline IRA accounts Medicare question non-prescripstion sunglasses DNA test kits Medicare Part B premiums client portal wells Fargo card reader opt-out Brexit vote credit freeze Notary Public pets prescription eyeglasses Medicare Part B retirement accounts 70 1/2. cell phones Wells Fargo employees Mobile Banking Security Tips credit cards bottom line estate account numbers CFP ® pet supplies jury duty retirement planning Retirement Contribution Limits 401K paperwork clutter Social Security Administration Financial Planning Magazine investment statements fun facts phone companies privacy notices emergency folder debt retirement plans estate planning credit score FSA chip-enabled EMV cards documents Two-Step Verification April 11 drive /usb Erin Nelsen Auto insurance flash drive Orange County Superior Court Social Security notary services web address Kiplinger Letter 23 andme home driver license emergency kit identity theft credit card company clients https ://seekingalpha Part D premiums . 2017 TD Ameritrade National LINC Conference executive order partner /owner Legal robocalls Medicare cell phone carriers offer disaster areas Puerto Rico vision screening clients show support fees 2018 IRA contributions borrowing money Open House president Trump retirement Fox News story ice cream event insurance policy clone counterfeits memorial Day weekend rescue organizations policy health care costs pet banking 2017 IRA contributions birth certificates insurance policies earthquake app California Lions Friends Independence Day Amazon June 29 parking spots gap insurance 4 pm -8pm company tax deadline illiegal robocallers contribution limit Facebook profile pet industry 900 number VOIP landline phones portal increase Supplemental Security Income April 18 2017. summer trustee information Facebook house sitter information Asset Planning trust home mortgages https :// integral member assets padlock Part B privacy settings phishing sites identity thieves home break-ins app