Running Out Of Money At Retirement?

By: ispeculatornew
Date posted: 09.24.2013 (3:00 am) | Write a Comment  (0 Comments)

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palomeWe only control so much right? Sometimes, smart & hard working people end up unable to find a good paying job. It can be because their health isn’t good, someone in the family is sick, etc. There are unfortunately many reasons beyond our control.

Today, I ended up reading about Tom Palome, a 77-year-old man who works for $10/hour in a Sam’s Club. Think that’s an ordinary story? How about if I told you that this guy used to make more in an hour than he now earns weekly? Mr Palome is a former vice-president of Oral-B. He ended up not saving enough for retirement. Like so many others, he probably imagined that such a day would never come and that the income would go on for much longer than it actually did.

These Stories Are Becoming More Frequent

I wish this was an exception. Yes, in some cases, it’s about wasteful spending (many pro athletes come to mind) but for the vast majority of retirees, it’s simply about:

-not investing enough

-not investing in a smart, organized way

In an era where many depend on government promises of pensions as well as pension payments from former employees, that is likely to happen a lot more. Governments of all kinds and sizes in the West are quickly realizing that they won’t be able to keep their promises. They have started making some changes (reducing benefits, increasing the retirement age, etc) but it’s happening too slowly to have a significant impact.

My Own Quest

As many of you know, I’m working hard on building my own passive income sources and dividend investing is a critical part of that.  I’m certainly not immune to something happening related to my job, my health (or that of a loved one) but here’s what I do know. Every year that goes by, my financial situation does get stronger and I’m a little less worried about all of the what if scenarios and the idea of having to flip burgers at some point later on in life. It’s also important for me to keep my spending fairly constant over the years to increase my odds.

Do you ever think of such a possibility? Do you think you’ll be forced to work late into your “retirement”?

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