Friday, May 08, 2009

Readers Prompt Me to Increase Retirement Savings

Saving more money for retirement has been one of my top goals, ranked below the emergency fund (#1) and college savings goals (#2)

But recent feedback from readers about my savings priorities, prompted me to re-examine the numbers. Here's a sample of the comments that prompted me to take a second look at my financial plans, which were outlined in this post: Financial Battle: Emergency Fund vs. Retirement Savings vs. College Accounts

While you may not plan to retire, a medical condition in your age might force you to retire! Make sure you keep that in consideration. As much as we all would like to think we are invincible, you never know whether you will get cancer/Alzheimer's/arthritis/ etc and be derailed from working.

My grandmother also has no plans to retire, but I know when she has medical problems, her kids will fund her unplanned "retirement" so I am sure your kids would rather take out loans for college and have you save in your IRA! Just a thought. --Anonymous

That advice, from "Anonymous" hit a chord with me and made me think about the advice offered by flight attendants on airplanes. You know the drill: In an emergency, parents are instructed to secure their own oxygen masks first and then turn their attention to fixing masks on kids. Security begets security.

Inspired by Anonymous, I pulled out the investment statements and examined my retirement savings account. I discovered that I was saving only 4 percent of my income in a retirement account. Through an automatic deduction program, I've increased that contribution to 8 percent.

The other savings goals remain priorities. But I don't want to be a burden to my children or other relatives.


Here's how to buy my book:

@ Barnes & Noble
@ Borders

No comments: