The Savage Truth on Money, 2nd Edition

CHAPTER 12

THE SAVAGE TRUTH ON INVESTING FOR RETIREMENT

Start Now—It’s Never Too Late

No matter what your age, it’s your responsibility to think about the future, and the possibility that you will be able to retire to a new lifestyle at some point in the future. We’ve come far beyond the idea that retirement means years of playing golf or sitting on a beach. As our lifetimes expand, and as the economy changes, we’ve all come to reevaluate the concept of traditional retirement.

But if you plan wisely, there is no reason to give up the idea of an enjoyable retirement. In fact, with careful planning and some simple self-discipline you can structure a life that will be fulfilling at all stages and never boring.

There are two simple stages to retirement planning: saving up and drawing down. The trick is to balance your efforts so that you can enjoy life in both stages. Since there are no guarantees in life, it hardly seems reasonable to postpone all the pleasures that you work so hard to enjoy. And it hardly seems wise to enjoy life fully now, without sacrificing a bit for a more secure future.

It’s easier to balance those objectives than ever, now that we have the tools of technology to guide us. You have access to sophisticated advice that can help you invest and diversify appropriately within your retirement plan, and programs that can help you create a withdrawal scenario that gives you assurance that your money will last your lifetime.

We’ll deal with the issue of scheduling and ...