Reading time; about 1 min 20 sec.
If you’ve read any of my past posts you know I don’t like the word retirement. But I was reading some statistics on the financial aspects. I would prefer to have my clients work toward creating Complete Financial Choice® instead of talking about retirement.
With Complete Financial Choice® you choose if you want to work or not. You choose if you want to travel or not. You choose if you want to donate your time to charity, or not. You have complete choice because your passive investment income covers whatever you want to do without you working to earn it.
Unfortunately this is not the goal achieved by many Americans. Here is what I was reading recently:
- 55% of people surveyed plan to work during retirement.
- 42% of non-retirees believe there won’t be any social security benefits by the time they are ready to retire.
- 25% believe they need $1 million dollars to retire.
- 22% of Americans have less than $50,000 saved/invested for retirement.
- 14% plan to work after retirement age because they will rely on this as their primary source of income.
It’s not a pretty picture and there are many reasons from education to the pandemic. And the primary reason is a lack of education and training on how to handle money powerfully. Our parents can’t teach what they don’t know, and our teachers can’t teach what they’ve never learned. This is the reason my programs have been created.
I am currently reading the book The Psychology of Money by Morgan Housel. The author has a basic premise that people think money is about math, and it is not. It is about psychology.
People buy at the wrong time, and sell at the wrong time due to feelings and fears. I would also call that psychology. It illustrates what I say constantly, “Wealth creation is a team sport, not a solo sport.”
When you want to make an irrational financial move due to fear and uncertainty and have no one to talk to, it is so easy to make major blunders.
This is where a team member can help. It can be your CPA, a financial planner, your spouse or even your children. It always works best when you have someone to talk to.
Who can you talk to when facing a financial challenge, concern or fear?
To Your Prosperity,
Rennie
