Retirement

That One Retirement Question

Will You Have Enough Money

That One Retirement Question

Retirement is not an age, it is more of a financial condition.  No matter what age, the same question always needs to be asked; Will you have enough money for retirement—for that work-optional lifestyle we all dream about?  Or. will your savings and income run out in the middle of what should be some of the best years of your life?

For most people, it can be an overwhelming question, so they simply choose to ignore it or procrastinate. Taking a minute to get smarter about how money works so you can take control of your financial future is a wise investment. By the way, what are you currently doing to prepare for your financial future? 

Your Financial IQ

Part of the reason so few people are prepared is that no one ever taught them the secrets about how money really works. According to a recent study, 70% of the global population is financially illiterate—and we have a problem here in the U.S. as well. We rank 14th in the World in financial literacy.

Financial illiteracy is a crisis because it can cause many serious problems; like poverty, debt, stress, divorce, financial confinement, and a shorter life span. It steals your time, health, and peace. And it’s why we’re committed to educating people so they can avoid costly mistakes that lead to the frustrating statistics we see on this screen.

Your Retirement Income

Back to a retirement question; How much of a pay cut do you want to take when you retire? Experts say we’ll need about 80% of our peak income to live comfortably. Let’s imagine someone caps out at $100,000—they would need around $80,000 to live on annually in retirement. How will they get to that amount?

The fact is if you’re relying on just Social Security and a 401(k)—as so many people do today—there could be a wide gap between the retirement income you have and what you want and need for the lifestyle, comfort, and freedom you’re hoping for.

Preparation Through Education

Start by taking steps to get your money right.  We help people close that gap by applying the Rule of 72 and and the magic of compound interest by leveraging tax-efficient strategies that can provide a reliable income. It is a very important rule to know but you also need to know something about taxes and investing for your retirement.

There are three ways your money can be taxed. Taxed now, like with a CD. Taxed later, like with a 401(k) or regular IRA. Or positioned so the earnings and income are never taxed. Which would you prefer?

Written by

Mike Amos

Mike Amos is a co-founder of Millionaire Mindset Life, a financial education and strategy company helping families and business owners keep more, protect more, and build more of what they earn.

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This article is for general educational purposes only and is not tax, legal, accounting, or investment advice. Strategies depend on individual circumstances and current law. Please review any strategy with your CPA, tax attorney, or other qualified professional before acting. Insurance products are subject to underwriting and carrier terms.

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