BUST THESE RETIREMENT MYTHS Lou Mancusi
Over 40% of Americans have retirement savings of less than $10,000. Considering that the average retiree spends about $46,000 annually, people who are not saving enough now may face hardship down the road. Let’s look at some myths about retirement that you should bust now for a more secure financial future.
Lou Mancusi
“IT’S ALL GOING TO PAN OUT.”
This idea lulls people into thinking that they do not need to be proactive with financial goals. While having hope for a prosperous future is a good thing, this faith should be supported with a plan. We cannot foresee everything that will happen in retirement, but we can utilize retirement tools to help gain clarity and direction to make wise choices for our future.
Lou Mancusi
“THE MARKET IS ALWAYS GOING UP.”
Many investors expect that the stock market will yield higher and higher returns. Although the market has averaged a 10 percent yearly return over the last 100 years according to the S & P 500, some years produced larger gains while some suffered huge losses. Study how your portfolio’s components are invested and what returns you can expect according to your time horizon.
Lou Mancusi
“I HAVE EQUITY IN MY HOME.”
While you may plan to sell your home and purchase a cheaper residence, this “downsizing” may not be as profitable if you end up paying more for conveniences and amenities. A reverse mortgage may bring you money, but this type of loan is costly and may not be suitable for you. Take time to contemplate the retirement lifestyle you want to have and set goals to save accordingly.
Lou Mancusi
“I DON’T MAKE ENOUGH MONEY TO SAVE.”
The longer you wait to save, the more you miss out on the power of compound interest. Investing a little now makes a greater impact than trying to save a lot later. Expenses, sudden or planned, are to be expected. Add them into your budget so that you can see how much you can stash for retirement.
Lou Mancusi
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