Overcoming Financial Worries

Alitany of financial worries and complaints createsa mental barrier that keeps many of us from doing the kind of planning needed to get us where we want to go. In fact, it keeps many of us from even trying. Yet breaking through this wall of worries may be easier than you think. Many of the pieces of your worry-free retirement puzzle may already be in place; others can be added along the way. If a few are missing, don’t panic—perhaps you can substitute something else. We’ll show you how to shake off retirement worries such as these:
We worry that education costs for our kids and perhaps medical care for aging parents will crimp, if not obliterate, our ability to save. Couples are waiting longer to have children, so those expenses are pushed further into the critical retirement nest-egg-building years.
THE GOOD NEWS: We’ll show you how to find the missing money in your household budget, reduce the cost of your debts and get started on a savings program for retirement.
We worry that social security will do little for us and that the system will go broke.
THE GOOD NEWS: Despite all the dire talk in Washington about social security, it remains on solid footing.We’ll show you what you realistically will get from social
security, what changes are in store, and how to make the most of it.
We worry because we have no idea what we’ll really need to retire. How much money will it take? Where will it come from? Many of us take what amounts to a
cross-your-fingers-and-hope approach.
THE GOOD NEWS: We’ll show you how to accurately calculate your retirement-income needs and your available resources. Then we’ll show you, step by step, how
to go about filling any gap between the two.
We worry that inflation will erode our retirement savings and it will. At a 4% annual inflation rate (that’s higher than the rate’s been for several years, but lower
than it’s been at other times), today’s $1 will be worth only 52 cents in ten years. Few private pensions are indexed to inflation.
THE GOOD NEWS: We’ll show you how to confront inflation to make certain you stay even or ahead.
We worry that we’ll be overwhelmed by rising medical costs. Employers are cutting back on the amount of health insurance they provide to current employees and especially to retirees. Medicare will pick up no more than half of your total cost-retirement medical costs, and Congress may restrict it even more as it works to cut federal spending.
THE GOOD NEWS: By knowing what to expect from medicare, what your employer’s plan will or won’t cover and how supplemental health coverage can fill any gaps, you’ll rest assured that health care costs won’t threaten your retirement nest egg.
We worry that frequent job switches can make participating in a company pension impossible.
THE GOOD NEWS: That’s less true today than it once was. We’ll show you why—and how to get the most from employer-sponsored plans.
We worry that our goal of retiring early is only a pipe dream.
THE GOOD NEWS: We’ll show you why even an early retirement is not out of the question if you make the right moves ahead of time.It’s never too early or too late to start planning for a worry-free retirement. Sure, earlier is better. But starting any time is still better than not starting at all—any financial decision you make before regular paychecks stop can be crucial. The message here is that it can be done; you can take control and plan for a financially secure future regardless of where you stand right now. Your best move to wipe away the worries is to take stock of where you stand, reconsider what retirement really means, compile your personal financial-freedom plan and put that plan into action. By reading this book, you’re already on your way.