Moneywatch101, Personal Finance, Money, Life, Debt, Savings
Can you really get tired of this?
Hey my financial friends, if somebody walked up to you and asked you, How much you saved for retirement? Would you answer the question honestly or would you dodge the question? The way you answer might shed light on how confident you are with achieving that magical retirement number everybody talks about in the media. I can bet some greenbacks that the people who answer honestly and without hesitation have all their finances in order, plus they might even know the exact number they have saved to the penny. On the flip side the people who have no idea how much they have in retirement, might not be saving enough thus might feel scared that they will never be able to reach that perfect retirement relaxing on an island beach house.
This is obviously an assumption but you get the idea behind how certain subliminal feelings might come to the surface when asked a personal finance question that might be too personal for some people. I totally understand how this might shock some folks to become guarded, but for the most part talking about money should not be so secretive. The one awesome behavior I have witnessed when I speak with others about money is that talking about it, triggers something within them and then they take greater notice to step it up with finances. This hopefully will lead to them being more competitive with how they manage money for the future. In addition to this it can open up great ideas or discussions with how to make more money. If the person is open mined enough to begin the money dialogue.
Now after you have released the secret CIA information behind how much you have saved for retirement. Can you answer by a percentage how close you are to reaching your ultimate retirement number? For example, are your assets currently at a level of 30% towards reaching retirement bliss? I think once you reach the 50% mark that the compound interest and the monthly contributions you make become such a huge component that will help you reach each milestone that much quicker. If you can just hold on and reach 50% you will not regret the effort you have made and now you will have time on your side for ultimate financial growth. The money snowball is growing every day as it goes in your favor, that interest you received ten years ago is steadily giving you hundreds of dollars now every quarter.
Another method some bloggers and financially inclined folks like to discuss behind the how much is in your retirement, is the good reliable X number of years’ worth of living expenses. Supposedly if you save 25 times annual living expenses you can literally retire and the nest egg should provide you with enough income to cover all expenses for life. If you stay within the 4% withdrawal rule and do not blow the principle. For example if your living expenses are 25K a year, multiply that by 25 and that will give you a nice round figure of 625K.
When it’s all said and done, people who do not want to discuss their retirement number status, maybe they feel embarrassed that they do not have enough savings. On the flip side maybe people are guarded due to protecting their nest egg if substantial, from the added risk of releasing that information. People become weird when a topic makes them uncomfortable. We can never know the reason why certain people do not want to divulge finances, but either way we have to respect their choices. I am a firm believer that if you can’t answer at least a range, then money might be a topic that can be intimidating to talk about. We never will know if that intimidation will help or damage your money life.
I struggle with completely divulging my financial information, and I guess by writing this I am trying to decide if it will help me or not to do so later on. Many bloggers release all of their assets willingly and I give them extra recognition for being brave to face something that is different from the norm. Bloggers please chime in how you feel about expressing how much you have saved for retirement without concern?
Would you be willing to discuss how much you saved for retirement?
Comment if you would like to provide what % you saved towards reaching financial freedom?
Rich Uncle EL
How much you saved for Retirement? is a post from: MoneyWatch 101
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