Will you have enough money when you want to retire?

A scary question isn’t it.  I meet quite a number of people who don’t want to even think about retiring let alone thinking if they will have enough money when they finally do want to retire.

The answer to the question was the subject of a presentation at a network breakfast I attended.  A certified financial planner used a case study to illustrate the point.

Retirement planning (1024x637)We probably all know this.  We are living longer.  But maybe we hadn’t quite connected the dots in terms of having enough money to retire on.  It wasn’t that long ago that the life expectancy after retirement at age 65 was only 9 years.  Now it can easily be 20 to 30 years, so the number of people potentially outliving their capital is going to be quite significant.

The website My Longevity has gathered data to help you work out your life expectancy based on your lifestyle rather than actuarial data.  It is worth spending a few minutes to complete the questionnaire to see what your life expectancy could possibly be.  I did mine and unless I get hit by a bus, I potentially will need my capital to last until I am 106!!  I certainly don’t have enough to last that long. Continue reading

Instant Gratification: the other side of the story.

Earlier this week I wrote a blog on Instant Gratification.  Just like the movie Sliding Doors, the story can have a different ending…..

Twelve months ago, I had a Freddy Mercury moment. “I want it and I want it now”.  What was the object of my desire? A red leather lounge suite.

leather compressed

It would look perfect in our house, not that there was anything wrong with the lounge suite that we had, but the red leather was divine.  It wouldn’t just enhance the room, it would transform it.

We weren’t even looking to buy new furniture, it was one of those moments when you walk past a shop and something grabs your attention, next minute you’re in the shop chatting to the salesman like he is a long-lost friend.

I did all the things that I tell my clients to do when impulse kicks in.  Walk away, give yourself time to assess whether this is a Need or Want.  What is the opportunity cost of the purchase?  Is the purchase worth it in terms of our longer term goals?  We looked at the price tag and decided we weren’t prepared to pay that price.  So we didn’t buy it. Continue reading

Instant Gratification: I want it and I want it now!

Twelve months ago, I had a Freddy Mercury moment. “I want it and I want it now”.

What was the object of my desire? A red leather lounge suite.

leather compressed

It would look perfect in our house, not that there was anything wrong with the lounge suite that we had, but the red leather was divine.  It wouldn’t just enhance the room, it would transform it.

We weren’t even looking to buy new furniture, it was one of those moments when you walk past a shop and something grabs your attention, so you go in to have a closer look.

I did all the things that I tell my clients to do when impulse kicks in.  Walk away, give yourself time to assess whether this is a Need or Want.  What is the opportunity cost of the purchase?  Is the purchase worth it in terms of our longer term goals?  We looked at the price tag and decided we weren’t prepared to pay that price.  So we didn’t buy it. Continue reading