One of the easiest ways to ruin your retirement is to avoid reality. What do we mean by that statement? Don’t let wishfull thinking ruin your retirement! For example, believing that you will win the lottery is one of the most obvious ones. Many people believe or hope they will win the lottery. The reality is that only an extremely small percentage of people will win a lottery. Of those that do, most squander their cash long before they retire. There are a number of other areas that we have identified and cover later in this post. If you fall into any of these kinds of wishful thinking traps, it is time to step back and assess your chances. Will you have a comfortable retirement with the real money that you will have during your retirement?
Don’t Let WishFull Thinking Ruin Your Retirement
It will all work Out Just Fine
Many people have this approach and just do not worry about the future. The reality is that unless you take specific action, there is a good chance you will be poor in retirement
The Market Goes Up Every Year
The market does not go up every year. Just look at the years 2000-2001, 2008-2009 and even more recently 2018 to date. There have been significant declines in these years. Over the long term the market on average has increased. But what do you do when you need funds and the markets are down in a specific year?
Maybe I will Inherit Money
With baby boomers retiring and passing along a great deal of wealth there is a good chance you will inherit something. But will it be enough? How much will you actually receive after taxes are paid on the estate, legal fees and distribution to other heirs. Probably not that much and certainly not enough to retire on.
I have Lots of Equity in my Home
You may indeed have lots of equity in your home. Will you down size? Will you sell and rent? You have to live somewhere. Real estate sometimes can decline as well. Will you have sufficient equity that you can access to pay the bills etc.
I Have a Business, I will Fund My Retirement
Will your business continue to thrive until retirement? Can you sell it or will you have to work well into retirement to generate sufficient income? Develop a transition plan for your business and yourself to ensure there is something for you from your business.
Saving When There are no Expenses
There are always expenses. There are always repairs needed on the house, the car, or even health bills. they never seem to go away. Start setting aside money to save now and don’t stop.
Planning to Make More
That raise, that promotion etc. will allow me to save more or start saving. What happens if you get laid off? Companies downsize all of the time. Other people get the promotions. Don’t count on the promotion etc. Stat saving now.
Win Big on a Sure Thing
An investment that is going to pay really well may not turn out. A business venture that may or may not work. Real estate investments that take longer to appreciate than planned. All of these can happen, but they have a very high risk associated with them.
Avoid wish full thinking and live in today’s reality. Start saving immediately for retirement. If some of these areas do turn out, you got lucky! Don’t Let wishfull thinking ruin your retirement