Why Retirement Planning is Important

retirement planningRetirement planning and you, are you ready? For those in the prime of their professional career, you may be forced to pay into a 401k or pension fund. It hurts when your paycheck shrinks saving for retirement but be glad, you’ll thank yourself later.

It’s no secret many of you are living paycheck to paycheck, working overtime and multiple jobs to make ends meet. The furthest thing from your mind is retirement, let alone saving. Heck, you need every dollar to pay for skyrocketing food and housing costs.

Financial pundits “the experts”, write blog posts,¬†articles, books and magazines clips touting the importance of retirement planning. They warn social security benefits will dry up sometime this century. And saving money in a savings account will garner as much interest as putting your money under your bed. Really, the only surefire way to grow your money is to invest in real estate.

Those currently in the workforce and paying into social security are doing so for retirees collecting benefits today, which begs the question, “Will there be any benefits for me?” No. And I suggest rethinking social security as a retirement strategy.

Retirement planning begins with you, by saving and investing your hard earned paycheck every two weeks into a vehicle that will grow over time. Relying on the government or an employer sponsored retirement plan might be your retirement planning strategy now but I suggest thinking of alternatives to combat future pension law changes.

Better believe pension plan law changes will occur.

Think about it, how can public agencies maintain an exorbitant amount of pension entitlements when state and federal funds decrease? Government agencies receive funding from the public, and if you aren’t spending money the government isn’t receiving funding.

Relying on the government to take care of your retirement planning is like asking a toddler to stop talking. It’s not going to happen. The key to retirement planning is investing at an early age. Begin saving $25, $50 or even $100 each paycheck right away.

Retirement age will be upon you before you know it. If you’re young, don’t wait, start now. Don’t rely on the government to support you because chances are this country and others will be filled to their ears in fiscal debt, unable to provide services and entitlement programs to the public.

Only you will care more about your future. Why give your retirement planning power to someone else? If you know nothing about retirement planning, learn. Search and review index bonds with no front-end and low management fees from reputable sites such as fidelity.com, Yahoo finance, Motley Fool, etc.

Contentment over your current financial position isn’t retirement planning. If you’re not doing anything to save and invest on your own, you may end up like the 55.6 million people receiving social security benefits at the time of this writing.

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Joshua Cintron

Joshua Cintron is the author of: What to Expect When You Enroll in an Online Class, and Upon a Moonlight Kiss, 104 Ways to Say I Love You. In addition to writing and publishing books, he is a finance professional with a graduate degree in public administration. He's held positions as an online college professor at several US colleges and universities.

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