Why I Don't Save For Retirement

Tell me if this sounds appealing: you work hard and bust your but for 40 years or more, you then spend the next 20 years or so (if you're lucky) living based off of what you saved and assuming you didn't lose any of it in an unforeseen circumstance? This is what a typical retirement looks like, does this sound appealing?


Is this what you want?


Is this what you want? Before we go any further you should know that I'm not telling you to spend all your money and not save anything for the end of your life, that's suicide. What I'm talking about is a little different strategy to truly enjoy your retirement but more importantly, enjoy your life.


Retirement is not what it used to be


It used to be you would work for a company for years upon years, when you were ready to retire; you would get a pension from that company based off of how long you worked there. In theory it was a great system, you would have guaranteed money coming in each month. The problem these days is with the demise of our economy, pensions are quickly becoming extinct. Most companies don't even offer a pension anymore and the one's that do are negotiating to get away from them. If our economy keeps deteriorating, I'm afraid people who are retired will lose that money they are desperately depending on. Don't believe me? Ask anyone who works for Wonder Bread, they had union negotiated pensions but about 4 months ago, the company stopped contributing. Do you really think you can depend on this for your retirement?


 Saving for retirement is nearly impossible


 Pensions are a thing of the past, so the new model is for you to plan for retirement on your own retirement. There are many options, even if you work for a company, 401 k, IRA, Roth IRA, SEP, many options. Even with these options there is still great risk in losing some of your money. Don't believe me? Ask the thousands of people who lost some or all their 401 k's when the economy started to tank in 2008. The fact that you must have enough money to support yourself and or spouse for a period of 15 years or more means that any hit in the fund is devastating. You might not have enough money and have to go back to work. Even with interest earned on certain accounts, you never know what's going to happen.


 The key to making it in retirement is to find work that you love


 Yeah, yeah, it's easier said than done but what you don't know is, you're closer than you think. If you find your true passion, work that you actually want to do, you'll never want to retire, what? If you're a Christian like me, the bible doesn't tell us to retire, it actually tells us to always be working. Now that doesn't mean having to punch the clock for the rest of your life but you should be doing some kind of productive activity. What if you visited a mission field and helped missionaries out and got some menial job to help support that. What if you started a business that you love that funded you travel all over the world and helping out in third world countries? You can find work that you love and always be working, this way you don't need a million dollars to buy a condo in Florida and play bingo every day. You will need less or can make it on what you're earning because you're actually doing something.


What do you dream of doing for work? Most people assume that in order to do work that they love they will make less money, it's a false assumption. With the power of the internet you can make money with any niche hobby that you're into. I read an article in USA Today last week about a woman who now supports her family with a website about crafts; she gets 2 million hits a month, she lives in rural Alaska and barely has an internet connection. The internet eliminates the usual barriers making it possible for you to market your dream to the whole world. Do you really think with all that potential that you won't be able to succeed?


Now imagine you started a business that you loved and that supported you, why would you want to retire? Why wouldn't you use it to fund whatever adventures you want to experience in life or use it to help teach others how to be on this path?


Save money while still enjoying life


As you make money and think about the future, don't just think of retirement. Have a middle ground where you save money, that's just being smart and safe, but also use your money to help you find or start the work you've always dreamed of. If you're doing well, don't just hoard all your money away, remember that we aren't guaranteed anything, we could die tomorrow. When you get to the end, you won't remember all that money you saved or all the things that you bought, you'll remember all the experiences you had. So put away money for your emergency fund, you might need to fall back on it but don't do this at the cost of missing out on some amazing trip you could go on that could change your life.


What I'm talking about might go against everything that you've been taught or your mind is telling you, think about it and determine what's best for you. Yes, save for later in life but no, don't hoard money and plan on doing nothing for the last twenty years. If you don't already know, figure out what your dream work would be and plan on doing that till you can't move. This won't be a burden, remember, this is work that you love, why would you want to give it up?


How do you want to spend your last years? Let us know with a comment:


 


 


 


 


 


 

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Published on February 15, 2012 05:54
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