By Craig Erwin, Ph.D. 12-9-20
Some people will always have more money than sense. Global Advisory Firm, Willis Towers Watson, found in a recent survey that nearly 20% of people making over $100,000 a year live paycheck to paycheck. Before you jump to conclusions, though, consider that, in some cases, there are logical explanations.
It seems that many people making over $100,000 live in high cost-of-living areas, which chew up their high salaries. In fact, although $100,000 may seem like a lot of money, it’s not nearly enough in cities like New York, San Francisco, or Washington, D.C. And student loan debt can make it even harder to make ends meet.
There is another way of looking at this problem. A friend of mine works with a man who falls into this category (he makes great money and he spends it all). He intentionally lives high on the hog, spending everything he makes on wine, women and song. His retirement plan is simple: he doesn’t plan to live long enough to retire. He plans to live it up and hopes to die young from overeating, alcohol abuse, or at the hands of a jealous husband.
It is widely known that many Americans are woefully short on financial preparation for retirement. Nearly half of us are likely to run out of money in retirement according to the Employee Benefit Research Institute. Don’t let yourself be one of them. See how to get started saving and investing by following this link – Dollar Cost Averaging https://womenretire.com/the-best-way-for-most-of-us-to-accumulate-wealth-dollar-cost-averaging/
Watch the video below to get ideas on how to prepare for retirement.