Everyone has their idea of the perfect retirement. Whether you’re settling down in your dream home or traveling the world with your spouse or best friend, it will take some serious planning. The last thing you want ruining your goals is money troubles. But don’t worry, we want to equip you with the information to make you feel confident about your retirement future.
There is so much information floating around out there about retirement and a lot of it is incorrect. We are here to point you in the right direction and make sure you don’t spend another second worrying about the wrong things. Here are three commonly told myths about retirement planning and why they aren’t true.
1. You are too young or too old to start saving for retirement.
Most people in their 20s or 30s don’t want to start thinking about retirement. It makes them feel old. But the truth is, there is no age too young to start planning for your future. Whether retirement is decades away or right around the corner, it is never too early or too late. Of course, the earlier you start, the better.
Compound interest makes early planning quite appealing because it means the earlier you start saving, the less you will have to invest over time! But we also understand that the earlier you start, the more confused you may be. That’s why we offer free resources about retirement planning and can connect you with an experienced self-directed retirement custodian to discuss your unique options and goals.
2. If you have debt, you can’t start saving for retirement.
Another of the popular myths about retirement is that you can’t start saving until you’ve paid off all your debts. If you have debt, it may seem contradictory to put money into retirement instead of putting it towards your debt. However, the reality is over 80% of Americans have debt. On average, each person is $38,000 deep in personal debt. You are not alone. That doesn’t mean that you should disregard your future.
When you put a portion of your money into retirement savings, you can earn money on that money. Now we aren’t saying you should ignore your debt and funnel all of your cash into retirement, but it is a good decision to at least contribute a portion of your earnings towards a retirement fund. That way, you don’t end up in more debt later in life because you can’t afford your retirement.
3. You aren’t going to get social security.
In recent years, social security has become a significant concern of most Americans. Since social security is considered the foundation of most retirement planning, we realize how much this could scare you. According to Social Security Status Updates, the fund for retirement benefits will be depleted by 2034. But they also report they will be able to pay approximately three-quarters of the benefits through 2092 if nothing changes.
Even with social security at its best, you will likely not have enough to cover all of the retirement plans you have. It is smart to invest in another source of retirement planning, such as a Traditional or Roth IRA.
There are so many fake sources and myths about retirement out there. It can be hard to understand everything while also trying to figure out what’s true and what’s not. The best thing that you can do for yourself is find a trusted professional to share their knowledge, support, and expertise. You don’t have to do retirement alone.