Generation X is defined as those born between 1965 and 1980. In speaking to friends and colleagues, it’s pretty obvious that we are not a generation of savers. Many of us are going to face greater challenges than our parents. It's going to make you wish that all you had to do was carry your sister uphill in the snow both ways. In addition to the high cost of mortgages, student loans and credit card debt, the pension of yesteryear is missing in action. For my parents, the pension is going to be the foundation for my parent’s retirement. It will be augmented by passive real estate income and IRAs. Most pensions have been traded in for the 401(k). The 401(k) at most companies comes in one flavor, but many choices…maybe even too many. This shifts the risks from the company to the employee. Trying to plan can be mind boggling...but you have to start somewhere.
The million-dollar question is “where and how do we start?” Considering that nearly every time you turn on the television, get on the Internet, or even open a newspaper there is an advertisement for the newest online brokerage. The financial arena has become exceptionally confusing. There are stockbrokers, financial planners, and even financial consultants at the bank. We all know that we should plan for the future…but the who, what, when and how questions remain.
I think the first step is to find out what your retirement means to you. For some retirement means that they can just sit on the back porch sipping lemonade, while for other’s it’s that time when they are finally able to travel and do all those things they have put off. Imagine what you want retirement to look. Once, you know what you want it’s easier to get there. “Those that don’t know where they’re going will always get there.” Then you should take some time to interview financial professionals who help you clarify your vision, time frame and other specifics. The third is the easiest…creating a plan that doesn’t financially cripple you today, but provides the greatest freedom when your only job is to enjoy your life, on your terms.
The first part is the most difficult. Only you know how you want your future to feel. The second part is just asking the right questions to the right people. The third part is simple once you have a trusted partner in your life. Keep in mind that there are always people out there willing to help you, but you have to stay committed.
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