What’s Your Retirement Planning Style?

Planning for retirement is serious, but there’s nothing wrong with the occasional lighthearted look at the subject. Mr. Spock or Homer Simpson: What’s your retirement planning style?

What’s your retirement planning style?

The Homer Simpson style

“I’m outta here! Take this job and shove it! Now let’s go to Moe’s Bar to have some beer, then we’ll go eat some donuts. I’ve got $10,000 coming to me because my Uncle Louie just kicked the bucket. That should be enough to fund my retirement.”

Does this sound familiar? Research indicates it describes the retirement plans of many Americans.

…various surveys show that about half of all Americans retire without calculating how much money they really need to generate a retirement income that will last for the rest of their lives. In fact, many just guess at the answer, and they guess way too low.

Please read on; Mr. Spock’s more logical approach is something you should seriously consider.

The Mr. Spock style

Spock would make careful plans that would increase the odds that he’ll live long and prosper. He would be carefully setting money aside in his 3001(k) plan, sponsored by his employer, Starfleet Command. He would have used his fingertip computer to calculate how much he should be saving to generate a lifetime retirement income. He’d know that the best way to accumulate savings for retirement is to invest in broad-based, galaxy-wide index funds with the lowest possible expenses.

He’d also know that the best time to draw down his government-provided benefit from the United Federation Security system would be to wait until age 80, even though many people start United Federation Security benefits at age 70, the earliest possible age with the lowest possible benefit. (Note to readers: The earliest age to start Social Security for our earth-based Social Security system is 62, which produces the lowest possible benefit. Most likely, you’ll be better off delaying the start of your Social Security benefits at least until age 66 and even better, to age 70.)

in addition to wisely saving and investing, Mr. Spock would do more.

Spock would also have read up on the various methods he could use to generate retirement income from his retirement savings so that he’d have a paycheck until age 140 — not an unrealistic age for a Vulcan who takes care of his health.

Spock would also most likely realize that at some point in his career at Starfleet Command, he’d need to move on to some other type of employment.

Having planned and invested wisely — and made plans for a second career — Mr. Spock will be in a good position to face the future with confidence.

He wouldn’t lose any sleep worrying that he’d need to live on a rocky moon in a remote part of the galaxy, just to make ends meet.

So, are you a Mr. Spock or a Homer Simpson? Probably somewhere in between. You best bet is to follow the example of Mr. Spock — after all, it’s only logical — when you evaluate your retirement planning style.

Click here to learn more about your retirement planning style.

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