Your parents’ retirement won’t be your retirement. The way your parents were able to retire isn’t the same as how your story will play out. After he was done with schooling, my dad went to work for one company where he would remain for the rest of his working days. He retired with a pension and a 401K. His retirement at first was pretty much planned out by his employer. Mom and Dad built upon his employer’s retirement plan and continued with their own savings, investments and discipline. My blue-collar Dad never worked for anyone else. He had but one employer.
I, on the other hand, worked for four different employers before answering my call as a business owner over thirty-five years ago. I have no pension, no 401k; but I do have savings, investments and discipline. As an entrepreneur, I understand daily, that the responsibility is on me.
But, the times they are a-changin’ for the younger generation.
I know people in their thirties who are already on to their fifth job, and they have a long way to go before the age of retirement and many, many more jobs. When planning, it’s important to begin with your end goal in mind. How are you building a plan with the most flexibility, freedom and control? Will you be able to take your maximum income with the peace of mind that you won’t run out of money and still be able to pass on as much as possible to your family? Younger workers today seldom have pensions, often don’t efficiently use their company-sponsored retirement plan offerings, and rarely have savings available for emergencies that come their way or for opportunities which might present themselves, let alone investing on the side.
Yet, discipline might be the over-reaching key to our visit today about retirement. You might have discipline, but simply don’t understand how to engage it or where. In past generations, your employer was part of your overall retirement strategy. They provided the discipline for you. Today, more than ever, it’s you. You’re responsible for yourself and that responsibility begins with the harnessing of your own discipline.
