Friday, 24 January 2020

Why Most People Won't Be Able To Retire


Big surprise to those of you who have been reading our article. This article laid out three factors that show a scary future when it comes to retirement for the majority of people.

Let's talk about some of the things that you need to know.


1. Social Security Fund To Depleted By 2034

The social security trustees announced that the social security fund that you've been paying taxes for year after year will be completely depleted by 2034. In other words, if you're under the age of  50 you will continue to pay these social security taxes but if things continue the way they are right now you probably will not receive any social security income.


2. United State Appeals Court Eliminated The Department Of Labor Fiduciary Rule

I know that sound very confusing, so let me explain what that means, this essentially means that financial planners who deal with your retirement planning are no longer required by law to make sure that you fully understand their fees or cost or commissions. Now the burden is on you to make sure that you understand everything and that there's no conflict of interest because they don't have to tell you everything.


3. People Still Expecting Social Security Income To Be Their Primary Source Of Income When They Retirement.

Even though social security is drying up and now it looks like people will end up paying more unexpected fees and cost out of their retirements. Personal capital did a study in 2018 and they found that 29% of generation Xers are expecting social security income to be their primary source of income when they retire and somehow, 15% of millennials are expecting social security income to be their primaries of income when they retire.

I don't know how to write this very nicely but unless there are major changes that happen, we're not getting any social security money. It sucks, I get it, as of 2018 employers and employees are paying a combined 12.4% tax for social security that a lot of us will never get to benefits from. That means you're paying taxes so somebody else can retire but nobody is going to be paying for your retirement.


  • The reality is, you're going to have to create your retirement and you're going to have to create your own income. There's no other option anymore and it's better to read it here now than when you're  65 right? 

  • Don't Plan For Social Security
  • Don't Plan For Pension
  • Don't Plan To Win The Lottery

It's time to start planning financially and honestly, the whole concept of retirement is kind of screwed up, I mean, the concept of retirement implies that you have to do something that you don't like for the best years of your life just so you can ultimately quit doing that thing so that you can start enjoying your life, that doesn't make any sense to me.


What Is Retirement?

They say those who retire early, die early. Let's think about this, what exactly is retirement? I think when most people envision retirement they think about enjoying life and spending more time doing things you like and spending more time traveling, spending more time with their family. To fund this thing you need money to survive, and at the same time, you don't want to just sit at home all day and watch soap operas on Tv because you lose your mind. 

Read: The Early Retirement Downsides You Aren’t Prepared For

If you go to work 8 to 9 hours a day and then immediately you retire and then you have nothing to do, you're going to go crazy because you're going to feel like you have no life purpose. And that is why so many people end up miserable because finally, you get to retire, but oh crap I'm broke, and oh crap I got no purpose.

What you want to do is come up with a life plan instead of just a retirement plan because why do you want to start enjoying life when you turn 65. Start planning for that and working towards that today. You need to find what you like to do and then you need to work to create income from what you enjoy doing.

Then, once you have that figure out how you can work on your own schedule from anywhere in the world, this way now you can go to Hawaii for 6 months and work on the beach and now you have something to do and you have income, this way, you don't have to worry about how you're going to eat. If you don't belives it's possible and you never work towards that goal it will never be possible for you. That is a guarantee. 

Remember, there are two parts, you have to have a purpose and income. 


Income

There is another way to create income as well like by investing in investing seeds which are things that pay you to buy them if you want to learn more about investing,  you can read some of our investing article below

Read:
How To Invest In 2020 - A Beginner Guide
How To Start Investing In Dividend Stocks For Passive Income



Purpose

Having a purpose means you have a reason to get out of bed in the mornings and you have a reason to go out and enjoy and do things in life. This can literally be anything and now with the internet and social media you can create income from doing something that you really enjoy, I mean, you can a product, you can start a blog, start a youtube channel, create a podcast, and this allows you to work from anywhere in the world and on your own schedule. 

Now, none of this is easy and none of this is going to happen overnight. But if you really want to start retirement or life planning then you have to start designing your life the way want to live and start working towards that goal. 


Conclusion

This is more important now than ever because the whole concept of retirement is completely shifting so now it really comes down to you and what are you going to do. about it.

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