David Giertz Says It's Never Too Early To Plan For Retirement
You never know what could happen during the course of your career. You may get laid off, or worse fired. You or your family member may have a terrible health issue that needs immediate undivided attention. All these reasons may make you want or need to take an early retirement. Since all of the above issues are out of your control, you need to get started on saving for retirement as soon as possible. Another reason you should probably save earlier, as David Giertz would say, is that your income may not allow you to save the older you get.
As David Giertz tells us, retirement is mostly identifying your income sources, your expenses and assets and managing them to make sure when you no longer get a paycheck, you do not end up living under a bridge. Identifying your income basically is calculating the money you get from work, and any other sources, like a second job. This will keep you aware of how much money you receive at the end of the month. After identifying your income, you move to how you are spending. At which rate and on what items. This will keep you aware on how fast your income moves and what you use it for and the assets you own that consume income, like a car for instance. Lastly and the most important step on retirement planning is management.
Having all the above information means that managing it will be easier. You already identified your income and you know whether or not you can put away 30% or more for retirement. You already know where your money goes. Now let's assume you live alone, this means you own a home. You can manage these assets by using a reverse mortgage or moving to a cheaper place. If you have a car you can choose to sell, and use public means, or plan ahead to cut your fuel expense. On the cost of day to day life, you can choose to move to a place where cost of living is cheaper, or shop at those cheaper places if moving is not possible.
David Giertz suggests that you should delay social security benefits till a reasonable age even if you retire earlier. This is because the benefits increase at a rate of 8% per annum between you retirement period and the age of 70. So the longer you delay the benefits the more you will enjoy in the end. Nowadays we tend to live longer than the age of our grandparents and you do not want to outlive your money. Delaying the benefits guarantees that you will not run out of money.
Retirement now has new realities and new set of rules due to the changes in lifestyle brought about by technology and the knowledge people now have on living better. This means if you thinking on planning you retirement when you clock 50 or if you already planned your retirement, you should probably go through it again so that the entire plan does not blow up on your face at last minute.
Most of this changes are the constant rising healthcare and historically low interest rates for income investments. This as earlier pointed means you need to lower your expenses. Now if you had planned your retirement earlier, the lifestyle at that time was different and favorable. Some changes are positive like the coming of robo-advisors that help you make better choices according to the world today. Adjusting your plan means updating on this changes. This changes tends to affect the mellinials born between 1982 and 2000. . “We learned that you’re on your own when it comes to saving for retirement. If you don’t do it, no one else is going to do it for you,” Callenback an administrator in LA County says.
David Giertz is an accomplished leader with 30 years of experience in the field of financial services. Recently he led $11B-$17.8B wholesale strategy in the private sector retirement plan. He is also a business coach with WABC hence you can guarantee that every word he says about retirement has a truth to it. From his endless list of achievement, David Giertz is with no doubt the person to go to or hear from when it comes to retirement planning. Learn more about David's career on CrunchBase, and learn more about retirement planning through Mr. Giertz's other French Tribune article here.
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