RETIREMENT PLANNING TIP
When not working isnâ€™t an option, consider a part-time career as part of your retirement plan.
I tell people to find it before you fund it. In other words, identify what it is that you want to do and try to fund that. Many people donâ€™t know why they want to retire at a certain age or what theyâ€™re going to do, so start identifying your passions now. I have a 50-year-old client who loves to ride bicycles. When he stops working full time he plans to work part time at a bike shop. He wonâ€™t earn much money, but what he earns will supplement his retirement savings. Plus, now he has a social outlet.
A lot of older people were under the assumption that they could retire at 50 or 60, but now they probably canâ€™t, given whatâ€™s happened in the market. If you retire at 60, what happens if you live to 90? Even if youâ€™ve got $2 million, if you start taking out $100,000 a year at 60 you have a 35% chance of running out of money before you hit 90. Most people donâ€™t have $2 million, and when you have a choppy market like this one it destroys the plan. Plus, our lifestyles have improved. People have to be willing to rethink their plans.
Life insurance is for the livingâ€”not the deadâ€”so plan your coverage around their needs.
Acquire as much life insurance coverage as you can afford while youâ€™re relatively young and healthy. I tell my clients that life insurance is an expression of love. Youâ€™re making sure that if the unexpected happens your loved ones are provided for. Life insurance is a way of creating wealth, a financial foundation that is critically needed among African Americans. Regardless of the amount your employer is providing (usually equal to an annual salary), do not rely on this entirely. Leave a legacy for which you will be remembered.