OK, so we Americans, post WW II generation, aren't known for our savings prowess. But we do have a reputation of always being ready to do something; such as plan for the future.
Sometimes we even get around to doing something proactive. Yep, that's us, still ready to adjust our lives based on changing circumstances, and, like good Americans, we do it with the most positive of attitudes. If we have a problem, we solve it.
Today, you are planning for retirement. Yep, you just turned 60 and it's a bit late, but, you don't have enough money to retire, so maybe you'll work.
Many of your friends plan on working, but wait a second, work as what? With all of the competitive pressure from overseas, all the downsizing and the changes in technology, it's hard enough to hang on to the job you have.
You think to yourself, maybe you could be a greeter, a fast food guy or even a security guard.
Of course, you will think in five years you'll be free of the parent care issues. It sounds cruel, but caring for mom and dad, just wasn't in your plans. And now with Dad gone, and Junior finishing up his five years at college, you'll have a little financial wiggle room in the near future.
But you've been told that you'll need at least 80 percent of your retirement income, just to live comfortably in your retirement lifestyle.
You're not even close! You have Medicare for the doctor bills and enough life insurance, well at least you have some, and your spouse can get by on it. If you ever need to have a long-term care like Mom and Dad, you can always move in with junior, right?
Yep, you're done. You'll work if you can, learning those new catch phrases such as"paper or plastic," and "Welcome to Wal-Mart," that's help.
You got some savings and you'll try to put aside a little more. Medicare will take of the day-to-day medical expenses, and Junior will keep that spare bedroom reserved for you.
Prudence would demand a bit more in-depth planning, including a complete review of your financial status and a worst-case scenario plan in case you die early. The point I am making is that procrastination can be very costly. Remember: It is never too late to create positive change.
Randy Frankenberry of
Local Financial Expert Frankenberry & Associates