Are You an Expert?

How many books have your read recently? How many articles have you read online? One fellow I have heard says that if you have read three books on any subject, you will have more knowledge about that one subject than 98% of the population and are considered an “expert.” I am not sure what I think about that, but if you think about it, that may be true. Some people only have interest in one area of life, but others have many, many areas of life that pique their interest.

When it comes to retirement and preparing for it, there are tons and tons of places to read up on the subject. Whether it be a blog about retirement or a book about retirement, the possibilities are endless. Some people are self-taught experts; others have had years and years of college or real life experience in the retirement arena. No matter where you fall in this spectrum, any information you have may be something another person could use in their retirement preparation years or in their actual retirement living years. How many times have you been talking with someone and a subject comes up, they share an experience or information they have on that subject, and you realize that it is something you have never heard or even thought of? That is where networking and experience sharing plays a big part in the information we gather regarding our retirement plans. Even if you don’t happen to agree with or believe what they say, it surely can’t hurt to listen to them and then make your own decision on the subject. Perhaps you have something you wish to share. If so, then why not do it? Everyone has something to say. Obviously, it depends on your audience, but if you are able to share information or ideas on any particular subject and are able to do it in a coherent, sane, and believable manner, there is always someone out there who will listen. This doesn’t mean you should just be making things up, but it does mean that if you have something that is a viable option when it comes to retirement planning or preparation, feel free to share it here on our blog. I am always open to hearing what people have to say on the subject.

Living the life I want to live,
Becky

The 4% Rule

Anyone who is in retirement or close to it knows what the "4% Rule" is referring to. If you don't know what this is and you are soon to retire or are retired, you should know. It refers to the amount of money that a person should be able to take from their total retirement fund to live on each year. For years, experts have said that taking 4% each year from your retirement savings, should be okay and should not present a problem of having enough money to live on in your retirement years. However, just recently, the experts are saying that the annual increase in the stock market is not enough to justify the 4% amount and now it should be closer to 2.8%. The advice they are giving to get by on that amount is to learn to live on less, work longer, or put your retirement funds into a different type of fund to earn more. However one chooses to do this, the fact remains that times are changing and what we had financially years ago, may not be the same in years to come. 

This presents many different challenges for the people in our society who either haven't saved any money or haven't saved enough, not to mention those who lost their life savings in the 2008 stock market plunge. We know several people who altogether pulled their money from the stock market and haven't reentered that means of retirement investing. Some of our friends are taking on part-time jobs just to get by. That is not what they had planned for their golden years, for sure. But, in order to live either at the same level of living or slightly above, most people are willing to take on whatever they have to to make ends meet. Some people also find it fulfilling to take a job that has more social contact. Thus, the many white-haired Walmart workers? I used to feel sorry for all the older folks I saw working at Walmart or Target or the local grocery store, but then I realized that some of them are doing it for a social outlet. We even see one guy who we have known for years who works the night shift stocking shelves at the local Walmart. When we have stopped by during the late evening hours (on our way home from a long distance jaunt of our own), we often see many older people working that shift towing pallets of merchandise to restock the shelves overnight. They seem to have a kind of camaraderie amongst themselves. I also often wonder how many of these older folks don’t sleep well anyway so figure they might as well make good use of the nighttime hours. 

Whether you have saved enough or not, it always pays to think ahead when it comes to your retirement years. We were not ones to have the money years ago to save much, but in time (once our kids grew older) we were able to start our savings plan. It is never too late. Of course it would be nice to be able to put that one lump sum away in your early years (20s or 30s) and let it sit and earn interest over the work years, but that is not always possible. Just remember though – it is never too late to start saving for your future. It is surprising how much compound interest plays a part in future funds. Be consistent. Be persistent. Be diligent. You will have a good life and be able to live nicely if you only plan ahead.
Living the life I want to live,
Becky