Have you ever wondered what would happen if you or your parents ran out of money in retirement? How would that affect your financial situation and your relationship with your family? This is not a hypothetical scenario, but a very real and serious problem that many people are facing today.
I have a friend who is going through a very difficult situation. His mother-in-law is declining rapidly in health, needs constant medical attention and has zero retirement money. She did not plan for her future, and now she is depending on her children to pay for her expenses.
My friend is frustrated and angry. He feels that it is unfair that he has to pay for everything, while his wife’s siblings are not contributing enough. He told me, “She’s not even my mother. They should pay her expenses as I will pay for my mother’s expenses!”
I sympathized with him, but I also felt sorry for his mother-in-law. She must be feeling scared and helpless, knowing that she is a burden to her family. She probably regrets not saving enough for her retirement, but it is too late to change anything now.
This is a sad and common story that I hear from many people. They are either struggling to take care of their aging parents, or they are worried about their own retirement.
They are living longer, which is great, but they are also facing higher costs of living, health care, and inflation. They are not prepared for the challenges and opportunities that come with longevity.
So, what is a simple mistake that people do that ruins their wealth and their kids’ future?
Not having enough savings for their retirement!
This is a mistake that can have devastating consequences for you and your loved ones. If you do not have enough money to support yourself in your golden years, you will have to rely on your children or the government to take care of you. This will put a strain on your finances, your relationships, and your dignity.
Not only that, but you will also deprive your children of their own financial freedom and security. They will have to sacrifice their own goals and dreams to support you.
They will have less money to invest in their education, their business, their home, or their retirement. They will have to work harder and longer to make ends meet. They will have less time and energy to enjoy their life and their family.
This is not the legacy that you want to leave for your children. You want to give them the best possible start in life, not the worst.
You want to be a source of inspiration and joy for them, not a source of stress and resentment. You want to be proud of your achievements, not ashamed of your failures.
How can you avoid this mistake and secure your wealth and your kids’ future?
By having a plan, living within your means, and saving for your retirement!
This is the simple and smart way to ensure that you have enough money to live comfortably and independently in your later years. You will not have to worry about running out of money, or being a burden to anyone.
You will be able to enjoy your life and your family, and pursue your passions and hobbies. You will be able to leave a positive and lasting impact on the world, and a generous and meaningful legacy for your children.
How do you create a plan, live within your means, and save for your retirement?
By working with a professional who is qualified and experienced in financial planning. A financial planner can help you assess your current situation, set your goals, and design a strategy to achieve them.
A financial planner can help you budget your income and expenses, manage your debt, invest your money, protect your assets, and plan your estate. A financial planner can help you optimize your tax, legal, and social benefits, and avoid costly mistakes and risks.
A financial planner can also help you implement a safe and effective strategy that we advise our clients to aim towards: living on your profit.
What does this mean?
It means that you only spend the interest or the dividends that your investments generate, and not the principal or the capital. For example, if you have $1 million and you make 5% ROI a year, you can comfortably live on $50,000 per year and never run out of money. You can also adjust your spending according to inflation and market fluctuations, and still preserve your wealth.
This is a simple and powerful way to ensure that you have a steady and sustainable income for life, without depleting your resources. You can also pass on your wealth to your children or your favorite causes, and make a difference in their lives.
Of course, this strategy requires discipline and patience. You have to resist the temptation to spend more than you earn, or to buy things that you do not need.
You have to be content with what you have, and grateful for what you get. You have to be wise and prudent with your money, and trust your financial planner to guide you.
But the rewards are worth it. You will have peace of mind, freedom, and happiness. You will have security, confidence, and dignity. You will have wealth, legacy, and impact.
This is the kind of life that you deserve, and the kind of life that you can create.