A dedicated financial professional with experience in the sales and restaurant industries, Edward (“Ed”) Marsi works as a senior financial consultant in New Hampshire. As such, Edward Marsi helps clients determine their financial needs and goals to create a clear picture of their retirement planning.
Successful retirement planning relies heavily on a person’s ability to view his or her future accurately and honestly. Unfortunately, there are several myths about retirement planning, including the following, which affect people’s ability to do this:
- You need less money. Financial needs don’t usually decrease much after retirement unless someone makes major changes in his or her lifestyle, like getting a smaller house. Instead, retirement often adds expenses, including the cost of travel, hobbies, and health care. For people who plan on maintaining the same life as before they retired, they may get away with saving 70 percent of their pre-retirement income. For everyone else, this decrease in financial need is less likely.
- You can wait to save. People often think that saving for retirement will be easier later in their career. In reality, it’s never too early to start saving for retirement. Time is an important tool when it comes to building wealth, so it’s better to start saving sooner rather than later.
- Your government will take care of you. With Social Security and company pensions, people believe that their government or company will cover their retirement for them. While this may have been true in the past, Social Security has become less important in recent years. And company pensions are often combined into personal savings. Needless to say, relying on a company or government for retirement is dangerous and may leave people short on the money they need.
