Every quarter I receive a newsletter that encourages me to review my retirement strategy to ensure I have the funds needed when I retire. While the articles vary, the message remains the same: retirement is not cheap; healthcare costs are skyrocketing; lifestyles rarely change in retirement. Invariably, a litany of charts follow, reinforcing the narrative and explaining how much I need in my accounts based on several factors: how long I plan to live (not sure how much input I get in that variable), my current income, and inflation, to name a few.
Like hundreds of similar investment documents published each month, the newsletter emphasizes the need to plan now so I am not caught unprepared for the future. One common theme highlights those adults who assume they’ll have enough for retirement but never bother to do the math to validate their hypothesis. Almost always, we are told, those assumptions prove false. As a result, they fail to plan properly and must delay retirement, reduce their standard of living, or forgo retirement altogether.
Read Full Article »