The older you get you don’t spend less, you spend different; what you need to know before planning for retirement.

The medium family of retirement age has $12,000 in savings, that is s terrifying figure for country where social security, the state pension, pays out roughly, $2,500 a month, and pensions for both public and private employees are unfunded; writes THE ECONOMIST.

It might has been true when life expectancies were lower and people weren’t living as healthy lifestyles as they are now. That because you have mortgages paid off. Travel less. Buy less and live a less active lifestyle, you’ll spend less when you’re retire.

High cost of living in retirement.

According to an article on MarketWatch, “living to 100? That will be $3.5m; the average money spend by the age 50 is $1.5million, and the average spend between 50 to 81- the average life expectancy is $1.4 million. Plan on living to 100? That will cost and additional $630.000 for a total of $2.3million in the last half of your life. That’s nearly a million more than the first 50 years, life isn’t less expensive in retirement even if you are trying to be a bit frugal, it’s more expensive.

Despite that you may spend on travel, or by them you may pay off your mortgage if possible, and all your children has being out of college. Is  still won’t make your retirement anyhow cheap, you will still have medical bills to stuff.

According to Lifetime medicals spending of retirees report. The economists determined that people incur an average of $122,000 in medical cost between the time they’re 70 and when they die-mostly paid out-of-pocket, except for low income people lowered Medicaid.

Some people over 70 face substantially higher costs, however the study found that. 50% will be hit with out of pocket medical bills of more than $300,000; 1% will see their total more than $600.000. So the truth of it is that you may end up spending more when you retire.

And the worst of it for most  Americans is that they don’t have enough to retire. Even with those cheap lives they plan to live  at there golden. They can’t afford. I am not against the idea of been active till seventy or seventy five, but will it be because of money, or you just want to.

Those average folks will tell you they are talking actions in contributing to there retirement. An I will be much happy, only discovering that it is  a unfair 401(k). Hoping that they will have enough money to retire on. Many workers in america simply allow their employer to deduct their money and put it into 401(k) retirement plan. Possibly the worst way to invest for retirement. Through it may go by different name in different country. In Canada they are known has RRSPs, in Australia they are called super anuation plans. In Japan they are called 401(k)s.

Reason why 401(k) can’t be the right investment recipe.

  • There is no insurance,  If there is a stock market crash. When I drive my car I have a insurance, when I buy my rentals property I have a insurance. But a 401(k) which my life depends mostly on doesn’t have any insurance.
  • Income from a 401(k) is  withdrawn at ordinary  earned income taxed rates: why are those financial “experts” masquerading as investors. Advising you to invest in a 401(k) plan because they get paid. Not by how much money they make for you. But by how much money you turn over to them in the long run. The longer your money is packed with them the more they get paid.

I am not saying 401(k) plans are bad. But I will never have one, because, it’s too risky and too tax-efficient. Too expensive and not fair to the investor.

Don’t let laziness conned you.

Our sir Issac Newton’s other universal laws, the law of conversation of energy states “a body at rest, stays at rest. And a body in motion stays in motion. In other word a person often found it easier doing the same thing because a body at motion stays at motion doing the same thing. And a person find it difficult to change because it’s often difficult to find something new started.

But don’t be deceived retiring rich goes beyond good intention.  You need actions. It means doing something different, studying something different, and starting something from scratch. You need to get a new ball rolling, making a few mistakes and  becoming smart at something.

Because a body at motion will alway s stays at motion. Even in the wrong direction. You need a force within to change the direction of your mind. From being a consumer to a producer. Going in the wrong direction hopping that someday thing will change is just being deceived. All around there are conned people who are heading to the wrong direction. Conned people are all around. They can be:

  • Voters who vote for politicians who promise to look out, for voters best interest.
  • Desperate people who fall for pitches like, “buy my book and became a millionaire overnight or ” take this pills and lose 10 pounds without exercising.
  • Imvestors who believe their financial planners advise to invest for long term in stocks, bonds, and mutual funds.

Life is like a grindstone, whether it grinds you down or polishes you, it depends on what you are made of”…..

Anonymous

No right answer.

To me life is about change. To be if you are not changing today, you may have been in great peril. Because the world is changing faster than ever before. The people who are in most trouble are people climbing to old answers and old report cards.

Most of the time I am ask what should I invest in? What should your advice be that I should do? I hesitate and diplomatically back off my answers. Is because right answers work only in game shows and our traditional schools.

With the internet expanding it’s reach the gap between the have and the have not will only increase. Today all around you will always found kids not out of high schools  making millions on the web. They don’t have a job and they may not even need one.

Things are changing, there are new answers every where. has made void some of our traditional answers. Now should be a time to choose wisely, whether to stick with our traditional retirement plans. And later when the body and strength is no more there be disappointed or go after financial education and be in charge of your life.