Written by Matt Wegner
Founder and Lead Counselor, Matt Wegner Coaching, www.financialexcellence.net
According to the US Census Bureau, over 62% of Americans retire on an annual income of less than $10,000. That’s less than $900 per month. That sounds pretty scary, but here’s something even more frightening: 70% of consumers live from paycheck to paycheck (source: Wall Street Journal) while only 55% of Americans “always” or “sometimes” worry about their money (source: USA Today). There’s a problem when so many of us are retiring with no money while the rest of us continue living paycheck to paycheck and not worrying about it. If these figures don’t inspire you to change your life, what will?
You Can Retire with Dignity
So the obvious question now is, “What do I have to do to retire with dignity?” First, I recommend you get on a good, written spending plan (a budget). Next, do whatever it takes to eliminate your debt as soon as possible. By eliminating your debts, you will free up cash to invest for the long term. If you can’t pay off your debts within 24-36 months, you probably need to consider liquidating some things. I then recommend saving 15% of your take-home pay and investing in tax sheltered investments with good mutual funds.
Look for future articles to discuss what type of investments you should use for retirement. If you find yourself wanting to save for retirement, but you still need some help getting started, send an email to firstname.lastname@example.org or visit www.mattwegnercoaching.com. We can help you plan for the future and gain traction with your finances.