When it comes to money and especially retirement, there are many rumors that arise. It seems like people who don’t want to know the truth would rather just make something up and tell their friends. If you want to retire, however, you must learn to sort fact from fiction and good advice from the bad. Here are some of the most prevalent retirement rumors you should ignore:
#1: “You need $1 million dollars to retire.”
Have you ever been told you’ll need $1 million dollars to retire? $2 million? $5 million? No matter which of these numbers you’ve heard, these rumors are all based on an unclear formula to scare you into saving. While you do need money to retire, it’s not as simple as picking a random number and stopping there. Your eligibility to retire is based on a lot more than the size of your portfolio. It depends on many factors and what, where, and when you spend money is different for everyone.
#2: “Everything will work out fine.”
Unfortunately, there are far too many people who just don’t bother to save because they think “everything will be fine.” When you don’t make retirement a priority, you’re basically setting yourself up for failure. Don’t fall into thinking and assuming things will “work out” in your favor. If you’re wrong and you reach retirement age without enough savings, then you’ll end up wishing you made retirement more of a priority.
#3: “Social Security will be gone before you retire.”
Countless individuals claim, “Social Security is going broke!” Many people don’t realize that Social Security is funded through a dedicated payroll tax. If younger workers are contributing, there will be money left to pay out benefits. Payouts may be a lot lower in the future, but no one can say for sure. So don’t take a permanent reduction in your retirement benefits just because of rumors.
Ultimately, it’s important to work closely with your trusted financial professional to build a comprehensive retirement plan. If it’s been awhile since your last review, then request your complimentary, no obligation review and start saving for your future.