"I don't trust investing," a friend said once. I asked her why. "Isn't it kind of like playing the lottery?" she asked. Investing is intimidating enough for people as it is. Toss in something as unpredictable as cryptocurrency, and people give up on it altogether. It reinforces the notion that investing is like buying a bunch of scratchcards.
One million dollars sounds like a hell of a lot of money, but when it comes to retirement, it might not take you as far as you think. The Wall Street Journal refers to this perspective as "the illusion of wealth". Here's what it means.
Everyone wants to retire comfortably, but it's not easy to tell how far away from it you realistically are. A monthly check of your "safe withdrawal rate" can tell you, as well as serve as a motivation boost, according to The Simple Dollar.
Every financial adviser on the planet has some suggestion for what the most important "retirement number" is. Some are even valid guidelines! But the one most tend to leave out is how much you'll spend.
In high school, my Spanish teacher was retired but said he enjoyed working so he continued to teach part-time. Back then, I thought he was nuts, but there's a solid case to be made for working after retirement.
Generally speaking, if you have kids, you have someone to watch over you beyond your golden years. Not everyone has children, though, and if you don't, it's up to you to prepare for your own senior care. And it's important to plan now.
