The Saving Paradox: Why Most Retirees Secretly Struggle

Interested in a plan to Navigate the Retirement Risk Zone?

Eric Amzalag, CFP®, RICP®
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Disclaimer: Please consult with your own tax, legal and financial advisors for personalized advice. Peak Financial Planning Inc, or its members cannot be held liable for any use or misuse of this content.

#retirement #howmuchtoretire #retirementplanning #retirementplan

[KennedyVerbruggen]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[nicolasbenson]

Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.

[joycewright]

Being healthy and debt free is so much more important in retirement.

[tonysilke]

Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.

[rodeleon]

the psychological comfort from having more than i need is worth a lot more to me than going on cruises, European tours, etc. i spent my life worrying about every damn thing under the sun, including having enough money to retire. standing in the grass in my paid off back yard in the summer morning sun drinking coffee in my bare feet is like being on the best vacation of my life every day. and i think its a good idea to have a pile available for the end of your life when you may need to spend a lot more on healthcare, assistance, etc. i retired this year at 62 and collected SS and get a regular "paycheck" from my vanguard account that more than pays for our lifestyle without touching the principle or all the income it earns.

[Riggsnic_co]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[selenajack]

Great video. We all strive for financial independence and better life. It’s not difficult in achieving this through the right investment, living frugally, and budgeting. I’m glad I learned early in life to work hard for financial freedom

[alexsteven.m]

It's advised to allocate at least 15% of your income to a 401(k). Online calculators can help you determine the optimal savings amount based on your age and income. Contributing 15% of your earnings to a 401(k) can significantly enhance your chances of enjoying a comfortable retirement. By doing so, you'll benefit from compound interest, which can potentially boost your retirement savings over time.

[cuz]

The goal in retirement is to live a rich life. Not to max out spending. Spend enough to live a rich life. No reason to spend more than that.

[chessdad]

I am guilty of underspending. Not out of fear of running out of funds, but influenced by all the hard times I have experienced.

[geraldt]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[MaxWell-ppzs]

I retired with $800k saved, and looking back, I realize I could’ve done things differently. Not saving or contributing early enough, plus the impact of inflation and sequence of returns risk, makes me worry about outliving my savings, and it’s not something I can easily ignore. Not saying it’s the only way to go, but it’s something I think about

[kenjordan]

I can't say that I saved too much, but I accumulated all of the "stuff" that I'd ever need. Only maintenance of the car and appliances, house, etc. are unknowns. No debt is my key to a comfortable retirement.

[SarahBrown-hn]

The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?

[scottarmstrong]

I’ve worked hard to save about $500, 000 for retirement, and now I’m ready to turn my savings into a paycheck. But how much can I afford to withdraw from savings and spend is what I don’t know. If I spend too much, I risk being left with a shortfall later in retirement. But if I spend too little, I may not enjoy the retirement I envisioned. What’s your advice on this please?

[GeldaRibeiro]

Planning ahead can really minimize taxes! I’ve been in the crypto/stock markets for half a year now, and it’s been a game changer. I was able to reinvest my RMD strategically, and I’m now pulling in about $25k a week, despite doing very little trading myself. It’s a nice cushion against financial stress. Best of luck with your RMD decisions!

[MindSelfExploration]

It’s recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving that percentage can ensure that you have enough money to retire comfortably. You can take advantage of compound interest and potentially grow your retirement savings over time.

[be]

He's absolutely right. It's hard going from being a saver to being a spender.

[Yette]

Perfect topic. I'm 3 years in retirement @57, did a good job in the accumulation phase with net worth of $3M+. The problem is I haven't spent any of it despite knowing I have no concerns of running out of money. Some minimalist traits that helped me save are not easily cast aside. I sense I'll be dead and gone with plenty of money left behind, but that was never a goal.

[rah]

Another problem that reduces spending is lack of motivation to do the things you couldn’t wait to retire for. You can can only travel so much and you are physically unable to do many things. The money keeps growing. I spend most of my money on coffee and eating out, simple pleasures.