When it comes to retirement planning, we find that there is a tug of war that pulls at the purse strings of many Americans. And all too often, the tug to use deficit spending to make big purchases win out over retirement savings. Some of the most popular forms of deficit spending include student loan, car loans, mortgages, and credit cards.
But all of this deficit spending causes a dearth of financial margin. And the more debt we hold, the less cash we have to take care of “life’s little surprises.” And so we put more on the credit cards and the cycle continues. To make a long story short, for many Americans, the working years represent a time of high deficit spending and little savings. But before we know, retirement is around the corner. Since retirement can last 25 years or longer, it is potentially the most expensive event of our lives. Yet, with retirement, there is no such thing as a retirement loan. Think about that: For most every big expense in our lives: college, cars, and homes, we borrow in order to afford the unaffordable. That’s why when it comes to retirement planning, here are the frequently asked questions we hear the most:
- How do we save for it?
- How do we pay for it?
- How much will it cost for me to retire?
At Calder & Colegrove Investment Group, we don’t provide microwave-fast advice. Rather, we help through what we describe as crock-pot planning. For example, if your goal was to be a top athlete in football, and you asked Coach Nick Saban where to start, he would tell you to learn how to block and tackle. With retirement planning, blocking and tackling is tantamount to budgeting, saving, and spending. It’s all sounds quite simple, yet it’s not easily accomplished. And that is, it’s important to develop and follow a spending plan so that you can live within your means, stay out of new debt, expire old debt, and save for retirement. Through our firm, we will take you through Dave Ramsey’s 7 Baby Steps to make sure your fundamentals are solid. In terms of those fundamentals, we address your access to emergency funds and the reduction and eventual elimination of debt. We use sound financial planning principals to help determine how much you need to save to replace your income in the future. None of this is easy but all of it is possible.
To get started with your retirement income planing, click here to request a complimentary consultation.