How much is your CAR worth?
How much is it insured for? And what does that cost? What are the chances of your having an accident?
How much is your HOUSE worth?
How much is it insured for? What does that cost? What are the chances of your
house burning down?
How much are YOU worth?
How much are YOU insured for? What are the chances
you will die?!
The first phase I call the “Go Go” years. These are those early years of retirement when you are golfing, playing tennis, travelling, and enjoying your retirement. Unfortunately, the Go Go years are followed by the “Slow Go” years. The Slow Go years are when you can still do everything that you did in the Go Go years, but you just don’t want to. In fact, you don’t want to go downtown after 4:30 pm because Dad can’t see when it’s dark out! The Slow Go years are followed by the “No Go” years, when you’re probably not leaving the building, until you’re “leaving the building.”
When planning for your retirement, you need to keep all three phases of retirement in mind.
Retirement income planning for your parents generation was much different than it is today.
According to the US Bureau of Labor Statistics, in 1990 35% of US workers were covered by a pension-by 2011 this had dropped to 18%.
Often people with a 401(k) plan, an IRA, and Social Security mistakenly believe they have a plan. This may be a good start, however this is not an actual plan. In the past, employer-sponsored pension plans provided some level of lifetime income. However, with pensions disappearing, most people will not know exactly how much income they can expect to receive from their employer-sponsored retirement plan until they actually retire.
Source: Wiatrowski, William. “The Last Private Industry Pension Plans: A Visual Essay.” Monthly Labor Review 65.1 (2012): n. page. Dec. 2012.