A recent survey by Wells Fargo found that 22 percent of Americans in the middle class would rather die early than not have the means to live comfortably through their retirement years. And whether your idea of a comfortable retirement includes time with grandchildren or daily tours on the golf course, Americans have never been more aware of one thing: their retirement savings isn’t up to par.
Retirement problems: We are not saving!
The problem is we’re still not saving. In fact, the survey found that 41 percent of Americans aged 50-59 in the middle class aren’t actively saving anything and those in their 40s who have been contributing to a 401(k) have just enough for about one year of retirement. More distressing is that this isn’t necessarily for a lack of trying, but could be the result of high fixed costs and lower annual incomes.
A decade ago, no one talked about tail risk hedge funds, which were a minuscule niche of the market. However, today many large investors, including pension funds and other institutions, have mandates that require the inclusion of tail risk protection. In a recent interview with ValueWalk, Kris Sidial of tail risk fund Ambrus Group, a Read More
Joshua Kadish, AIF, RFC of RPG Life Transition Specialists, a holistic wealth management firm, advises clients to decide what’s most important in life to them and look for ways to live that ideal retirement while staying true to their budget.
“The results of this survey are heartbreaking,” says Kadish. “We know how important money is to survival, but if we just define and adjust our expectations, we can live meaningful lives in retirement on any budget. It’s certainly helpful for you to know what lifestyle your current assets and Social Security may support so you can be prepared to make sacrifices, if needed.”
Steps to live out your retirement dreams
Kadish offers the following three tips for how to live out your retirement dreams without breaking the bank.
- Start saving airline points: This is a simple thing to do and can pay you back in the long term by giving you the freedom to travel, says Kadish. Sign up for an airline credit card and make all your day-to-day purchases using that card. If you start now and save up points over several years, you’ll be able to take some fantastic trips without the burden of high flight costs.
- Consider retiring in a college town: College towns have a lot to offer retirees. Many offer access to quality public transportation and healthcare resources. And, you can enrich your retirement years with ongoing education by taking a class at the local university.
- Schedule off-peak tee times: Nobody wants you to give up your dream of endless golf in retirement, so make some easy adjustments and get the best of both worlds. Many courses offer lower rates for off-peak tee times. If you’re in a warm climate, the same round of golf could cost considerably less in the afternoon than the morning.
Retirement planning isn’t always easy, but it should never be so daunting as to make an early death more appealing. Fore more information on the recent Wells Fargo study or to speak with Joshua Kadish, AIF, RFC of RPG Life Transition Specialists, please contact me.
About RPG-Life Transition Specialists (RPG)
RPG is a financial planning firm that exists to help people connect their wealth to purpose and live a more enriched life as we educate them to make future decisions with confidence. We believe that the financial services model has been broken and have strived to do things differently. We do this by putting education first, spending our time in helping people identify what is truly important in life to them and helping them connect their wealth to their purpose. With a 90% client retention rate over the course of 19 years, the experienced team of financial professionals take time to counsel each prospect and deliver a plan designed to meet each individual’s specific needs. Partners, Joshua Kadish, AIF, RFC & Nicole Mayer, AIF, CDFA reached #1 on Amazon in the wealth management category for their book, Navigating Life’s Transitions: Connecting Your Means To Your Meaning. They have been featured in esteemed publications like the Wall Street Journal, Money, Consumer Reports, Crain’s Chicago Business and have been recognized by Chicago Magazine as Five Star Wealth Managers in 2012, 2013 & 2014. Kadish is also the former co-host of “America’s Wealth Management Radio Show” with Dean Barber on 890 AM WLS. RPG-Life Transition Specialists is located at 2610 Lake Cook Road, Suite 250, in Riverwoods, Illinois. They can be reached at (800) 596-0253. Find them online at www.rpgplan.com. Securities and advisory services offered through National Planning Corp. (NPC), Member FINRA/SIPC. A Registered Investment Adviser. RPG and NPC are separate and unrelated companies.