Retirement

I am going back to one of my careers in life to talk about "retirement plans". If watching TV, reading a magazine, or looking at any other type of media, you will see ads for at least 5 financial advisory firms - aka, stockbrokers. The ads with some guy carrying around "his number"  is a perfect example of the idea of having a specific amount of money when you retire. I've never met anyone, who off the top of their head would not say their goal is as much as I can have. If that enables me to travel, great, but mostly I want a roof over my head, food to eat, and some clothes to wear. Many people go through this questionnaire with a financial advisor or planner and get a number back that will allow them to live in the manner their questionnaire indicated they desired. The number for most people is the scariest thought they have yet to consider in their complicated lives. They put money in their 401k every month, but can't imagine it growing to that "number" and especially since a buy and hold investor has maybe broke even the past 11 years. Between now and when you want to start spending that money, your retirement, You will likely have 2-3 major surprises that will have a huge impact on your finances. After ten years of putting together fancy plans that a flat market made look like folly, I determined I could no longer sell a wish at a much higher price than it turned out to be worth. I think every retirement plan should include a few considerations. How much can you save now without living like a hermit? My preference would be to see everyone tithe to their local church, but that is a personal preference, so I'll set it aside for now. Once you pay uncle Sam more than is justifiable, you need to contribute what you can to your 401k or IRA. I think your budget, if possible should include at least 2 family vacations each year and then every so often an adult get-away. We would all like to have enough money and insurance to live our lives out in our own home, but if that comes at the expense of enjoying some of your younger years doing things you can't do at 80, I believe you are robbing yourself and family in hopes of dying comfortably. The next question is, how should I invest this money? This may be a spot where you want to consult with an advisor, but your "guess" is as good as theirs. There are plenty of cheap ways to go to determine your investment style and where your risk tolerance is. Find those two things out and you can handle most other decisions on your own. Buy as much long-term insurance as you can afford and lock it in at that price as long as you can. Don't put it off or you may have an acute pancreatic attack that leads to more, and then you may be diabetic as a result and have other health issues and at the age of 50 be An untouchable for insurers. There are certain things you need to plan for, but you don't need "A Number", "A Green Line", or "a Vineyard".

The Grump