My husband was reading Financial Peace last night (he often thumbs through it every now and then before bed). He read the following statistics to me:
Out of 100 people Age 65,
1 person = Will be Wealthy (5 million or more in net worth)
4 people = Will be Financially Independent (1-5 million in net worth)
41 people = Will have to continue working
54 people = Will be BROKE
Wow, majority of us will be working or completely broke! I think it’s hard to think you will struggle when you’re older because it’s just so far off. And if you’re “doing well” now, you can’t imagine not doing well when you’re older. Many people think they’ll want to work when they’re older, and some just might. But, there will come a point after decades of working and a physically worn body, that you can’t.
It takes quite a bit of knowledge, wisdom, WILL POWER, and hard work to actually retire financially independent. Whatever you do, DO NOT RELY ON THE GOVERNMENT.
YOU HAVE TO TAKE YOUR FUTURE INTO YOUR OWN HANDS!
My husband is a teacher and we both have our own businesses so to speak right now. We make a good living, but after TITHING, SAVINGS, and RETIREMENT we really don’t make a whole lot. And that’s okay right now. We’re both doing what God has called us to do and we just have to work harder to set up our future correctly!
For us, we both agree we want to be able to retire early (before 60). Will he or I continue working past then? Maybe. But we want the option to stop. You never know what life will bring when you’re older. We both want to travel. We both want to enjoy the heck out of our children and grandchildren. We both want to live in peace without worrying if we can eat that month. We both want to GIVE, GIVE, and GIVE to others when we’re older, especially our kids and their kids. We want to spoil our grandchildren. And we don’t want to worry about medical bills. We want to leave no burdens for our children. Plus, God calls his people to SAVE and use our money wisely…save for the future. Read THESE verses on what God says about saving money.
So, what do you do? Everyone’s financial situation regarding retirement is different. Some people work for companies that provide a way to save. Others own their own business and have to save themselves. For us personally, teacher retirement will not be enough by the time we’re 65. We have to also contribute to a retirement fund (Roth IRA).
I would suggest doing 2 things:
–Budget – It all starts with a budget. Every piece of our money has to be divided out. If you do not have a budget, it will be much harder to save any of it.
-Find a financial planner to help you learn how to save (even Ryan and I do this because we do not fully understand all that mumbo jumbo talk about investments/government). If you’re not sure where to find one, I would suggest going to Dave Ramsey’s website and using one of his ELP’s (endorsed local providers). Or ask a friend who has money under control, who they use. Many financial planners do not cost money because they are paid by a third party (i.e. investments made by clients).
How much to retire?
This is different for all, but if you do a ROTH IRA, the maximum amount (as of today) is about $450/person a month. $5500/year. There are other investments, but that is a general number.