Planning for retirement stresses most people out. Most people don't know how much to save fore retirement. Added to this, they have misconceptions about retirement itself.
With these two ideas in mind, I have two Wall Street Journal articles to recommend.
The first highlights online calculators that help you figure out how much to save for retirement. Let me ruin the plot: there are no magical calculators that tell you everything you need to know. Retirement calculators are all based on assumptions about a future that no one can know with precision. But, the process is worthwhile. Remember Eisenhower's quote: "Plans are nothing; planning is everything." Don't expect the calculators to give you quick and easy answers, but do expect the process to enlighten your understanding and inform your future actions.
The second highlights myths that most hold about retirement. Here, I'll quote Mark Twain, "It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." Most retire early because they have health problems or get fired--before they are ready to retire. Getting rehired isn't that easy. Buying a second home doesn't work out that well. You will have medical costs that Medicare doesn't cover. You'll probably spend more than you expect in retirement.
Everyone can prepare for retirement and succeed, but few do. Focus on planning instead of a plan, and make sure you aren't deluding yourself about the nature of retirement.
Nothing in this blog should be considered investment, financial, tax, or legal advice. The opinions, estimates and projections contained herein are subject to change without notice. Information throughout this blog has been obtained from sources believed to be accurate and reliable, but such accuracy cannot be guaranteed.
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