What do you want to do when you're 75? Where do you want to live? Will you want to travel? Learn how the reality is that knowing yourself and thinking through basic logistics can help your rethink retirement.
- Planning for retirement is tough.…Can you answer the how much money do you need question…when it's so far away?…How about as much as humanly possible?…It's hard to know how much money you'll need in retirement.…If you have a pension…or you'll get something from social security,…terrific, you'll have some income.…But even if you have a pension…and especially if you don't,…you're going to need retirement savings to tap into…and you're going to need to save enough money…so that you can live a comfortable life.…So again, how much is enough?…Unfortunately, the single biggest variable…that affects this calculation…is completely out of your control…and that's knowing how long you're going to live.…
The longer you live, the more money you're going to need.…Because our powers of fortune telling aren't so great,…you'll have to make some big assumptions…about how much money you're going to need for your retirement.…Let's just play with some numbers to see what happens.…This is a very rough calculation,…but let's say you'll live 25 years after you retire…
- Recognize the strategy used to combat inflation while still working.
- Determine whether investing in a company or working for a company is more profitable.
- Summarize the concept of Dollar-Cost Averaging.
- Identify the simplest, easiest investment opportunity available for young workers just starting to invest for retirement.
- Explain what “diversifying” means by using an example.
- Determine whether incurring debt can have a financial advantage.