Hello SOTGC community,
Did you know that in the year 2030 the Social Security trust fund will be almost completely depleted? For those of us in Gen X and Gen Y, it’s a scary thought. Have you saved enough? The answer is most likely no. We took a large hit in the financial crisis of 2008, which means we will be working longer than our parents and grandparents to close the gap. So, the question is, what will you do?
In a recent Time Magazine article by Rana Foroohar, she says, “Boomers are scrambling to get by on a minimal income. Gen X-ers can’t afford to stop working. Millennials [are] staring at a bleak financial future. This is the retirement apocalypse coming at us fast – unless we do something about it now.” Many have proposed more government intervention, even mandating retirement savings and making it more difficult to borrow from your own 401K before maturity. Lawmakers are working to create new plans that marry the old style pension plan with the flexibility of newer 401K plans, namely California’s new Secure Choice Retirement Savings Program (CSC). However, there are strategies that financial advisors recommend people complete on their own to ensure a healthy retirement savings, such as working longer, living with family and friends, auto-deducting each month into savings, considering index funds, and tapping into your home equity (Time Magazine).
Unlike our grandparents, we will probably not “ride off into the sunset” at 65 and play golf or bridge all day. No, we will need to reinvent and recreate ourselves and our careers. Instead of thinking of your career as linear, with a definite ending, think of it at a tree with branches. We have the opportunity to work in more areas and discover different strengths! For example, I admire the way my own mother has reinvented herself and her career throughout her life. She started as a manager in a restaurant in her twenties. In her thirties she was a homemaker. In her forties my mother managed my father’s private medical practice. And, in her fifties she obtained a real estate license and is now a highly successful real estate agent. Additionally, my mother did all of this without a college degree.
As Jane Pauley recently said, “…Trial and error are keys to growth and self-knowledge. Reinvention may require being reintroduced to yourself. Self-discovery may not be a requirement for reinvention, but it may be the payoff.” (Time Magazine).
So determine what is right for you today, and dream of what you could accomplish tomorrow. We have more time than previous generations, so the options are endless!
Have you had “multiple acts” in your own career? Or, do you have a creative way to save for retirement? Continue the conversation with me on Twitter @ryangreenonline and Facebook https://www.facebook.com/profile.php?id=100007156953049
Foohar, Rana. (2014, June). 2030 The Year Retirement Ends Why We Need To Start Fixing It Now. Time Magazine. 183, 41-44.
Pauley, Jane. (2014 June) Second Acts Life is Long. Yours May Be Overdue For an Overhaul. Time Magazine. 183, 46.