Are You Planning for Retirement-- How?

The dream of most people facing retirement is to live their lives the same as they did before retirement, giving up nothing, but relying on their nest egg and pensions to kick in to allow them to enjoy retirement to the full. This dream is quickly being shattered for many because of the downturn of the economy. Let's just hit on a few of the problems facing retired people.

1. Pension Cutbacks. Some people who have worked for years are finding upon retirement that pensions are being cut and in some cases completely eliminated. People who have relied on pensions to compensate for the loss of income from their jobs and also have invested their money in plans such as 401 k’s to cushion their retirement, are now facing a cruel reality.
People are out of pocket huge amounts of money due to ponzie schemes and other setbacks due to the soft economy.

2. Too Much Debt. Borrowing money is the number one killer of retirements plans. Many people go into debt to buy a home or large ticket items such as college or university tuitions. Also debt is often used as a crutch for enjoying a lifestyle that is in reality not affordable for the average person. Living beyond one’s means has been the norm for many people and they have been caught up in paying these debts off over a long period of time, increasing their debt load by thousands of dollars because of interest charges.

3. Champagne Taste on Beer Income. Living beyond one’s means is a quick way to eat up your savings and cut into your retirement income. You do not have to give up everything you enjoy, but it is a time to tighten your belt and use common sense when planning out your budget. You should make an attempt to scale back on entertainment expenses. Boredom can quickly set in after retirement and it is easy to fall into the trap of spending time and money to compensate for not being busy working at your job anymore. Have you ever noticed that restaurants are still full of people eating out? Just check when you go into a restaurant at how many retired people are occupying a table. Many retired people no longer cook for themselves and spend hundreds of dollars a month eating out, thus increasing their expenses and eventually the debt load starts to rise and their budget suffers. Perhaps a plan "B" would eliminate a lot of boredom and money woes.

4. Prioritize Your Time and Money. Every parent wants their child to have a good start in life. Unfortunately many parents make the mistake of cushioning their children from reality and paying for their college or university costs, at great sacrifice to themselves. Time and again retired people exhaust their hard earned savings to make a more comfortable life for their children . We all want our children to be more successful than we are, but that doesn’t mean we need to sabotage our retirement plans to make this happen. The cold hard truth is that your child can borrow his way through post-secondary education, but you cannot borrow your way through retirement. Look after your retirement first, then save for your child’s tuition. You need to plan for tomorrow. No one else will do this for you. What is your Plan "B"?

What is your Plan “B”? If one finds himself boxed into a situation with no hope of recouping financial loses, what can be done? My husband and I were in that situation due to a loss of employment just 6 months after our marriage. Due to circumstances we were forced into early retirement. Our savings depleted fast and we knew we could not survive on our small pensions so we started looking for another income stream. We were introduced into Network Marketing and I must say it was daunting a first but 10 years later, we have built a strong business and have never looked back. It has been the best Plan "B" for us and I am confident you too can enjoy the benefits that working from home and owning your own business can bring. Oh and I forgot, being your own boss is heaven sent.