I recently spoke to a woman who is very concerned about having enough money in her old age. She mentioned that she had fears of becoming homeless or a bag lady. The pressure in her situation is real.
My father taught me that you need an income during retirement. He pointed out to me that net worth is not income. This is so important. I have talked with women who tell me, “God is my security.” This is not a viable plan. We have to take action. They could consider using their talents in a job that may be simple but helpful. Even working as a cashier or at the front desk at say, The Senior Center can provide cash for groceries, utilities, and auto needs.
In my case, dividend paying stocks give me the money I need to stay on my budget and to continue investing. Your money has to grow and last, or it will deplete and disappear. Some women don’t face this fact. It is a hard truth. Caretaking and being domestic will not pay the bills. These are very valuable activities, but unfortunately, oftentimes they are just expected, for free.
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I agree. We never really know what our future may hold. And being practical about this really does help. I no longer do lots of work, but I do still work in a healing clinic once a week, and teach a yoga class. In my country we all get the pension at age 65, however, it's not exactly an affluent income.
ReplyDeleteThat’s true, Ratnamurti. It’s good that you have kept working. It can be harder to get hired after fifty.
DeleteThe Teachers' Pension I receive, plus the state pension and a small monthly amount from an AVC is enough and a bit to spare - something I am very thankful for. Planning should start much earlier than it does, I think. No-one wants to think about retirement when you're in your 20s but it is much better if you do, especially nowadays when the state pension doesn't cover all needs any more. xx
ReplyDeleteYes, it sounds so far away when we are in our twenties, Joy. Time passes so quickly as we get older. It sounds like you have set yourself up well.
DeleteGood point, Stephenie. One does require some sort of income to pay the bills and other necessities of life. Often, people don't save enough to fund their retirement or account for inflation, etc.
ReplyDeleteInflated prices can be a huge shock, Bless. The older we get, the higher the prices increase and expand.
DeleteSuch a very important topic! I like to watch Dave Ramsey on YouTube. Then, I also get other financial advisors' videos pop up to watch. Unfortunately time passes quickly, and so many only realize that they need financial resources after they are into retirement. I believe the first step is to pay off your house before retirement. That is an old-fashioned plan, that my parents and their parents did. That assures none of your income is going to go towards a mortgage or rent. andrea
ReplyDeleteYes, a paid off home in retirement makes a huge difference, Andrea. That takes many years of discipline for most people. We still have property taxes, maintenance, and home insurance to factor in, as well.
ReplyDeleteHaving seen both my parents and my in-laws enjoy a happy retirement with sufficient funds was an inspiration to us to think about what our retirement should look like. And we try to be good role models for our sons. The monthly income is enough to make ends meet and have the occasional splurge. Is that picture from Santa Monica?
ReplyDeleteHi Anita, You two are excellent role models for your sons. The yellow house was taken in Newhall. The top photo is Wrightwood, CA.
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