Retirement is in a crisis right now in the United Sates?
Only 40% of Americans by age 65 have saved more than $100,000?
Social Security will run out by 2033?
Financial concern is the second biggest obstacle to aging (health is number one)
I sure didn’t and boy, did these facts get my attention.
Amanda said that regarding finances, there are
Things that matter and Things you can control.
Our focus should fall in the middle of those two things, what they both have in common.
According to Amanda, the number one, most important thing that everyone should be doing, no matter how old they are or what their current financial status is, is to SAVE MONEY. In order to have one million dollars saved by retirement, you need to save a minimum of $5,000 a month in your 50’s. It is so much easier to begin earlier, but if you haven’t, there is no better time to start than right now. Ask yourself, how much can I really save today? $100 a month ? $200 a month? The best way to achieve this goal? Automate your savings plan. Amanda recommended a web site, Betterment, as a great resource to manage your savings in investments. You give them your risk profile and they advise you on your retirement package ability.
The second most important thing to do right now, GET OUT OF DEBT. Here is Amanda’s advice (from her own personal experience) on how to achieve this:
1) Increase your earnings (A raise would be nice but be more practical and realistic is to take on a second job)
2) Downgrade your lifestyle. (Live differently than you thought you would. Don’t expect entitlements (Social Security, Medicare, etc.) to save you)
3) Fold in current debt to your expenses. Start paying off your bills completely, one bill at a time.
Since many of us are facing helping our children through college, a question was asked, when money is tight and you have to make a choice on what to spend it on, your retirement or your kid’s college expenses, which do you choose? Hands down, Amanda recommends saving for your retirement over college expenses.
When I got home, I shared this information with my husband and rededicated myself to saving consistently each month with what I earn. Developing a retirement strategy is next on our list. By following this advice, we will be better prepared to financially meet the demands of living longer, more productive lives. After all, my grandchildren are depending on it.
Pfizer invited me to attend their Live Well. Get Old. Blogger Summit on October 19, 2012. Pfizer paid for my airfare, hotel, meals and transportation during my stay and provided me with a basket of Pfizer consumer health products, a book from one of the speakers and a mat used in our yoga session. I was not asked to write or talk about the event. Opinions are my own.