We don’t know where they come from or who starts them, but they seem to stay around for an awfully long time. For example, a myth started over 30 years ago when 401(k)s first came on the scene read something like this. “If you max out your 401(k) savings contribution each year it will be enough for you to retire on at 65”.
Surprisingly, most Americans believed this to be true. Even more surprising is why no one has clearly stated that “If you only save the maximum 401(k) taxable amount annually it will NOT be enough to retire on.”
Further debunking this myth, the February 9, 2011 edition of the Wall Street Journal featured the article, Retiring Boomers Find 401(k) Plans Fall Short.
Unfortunately, if you are one of the millions who believed this urban myth, the question is what do you do now to recover?
“The Math” – Do the math by creating a current budget of your living expenses. Add to this gathering up your most recent social security statement, bank statements, credit card and mortgage statements, etc. The next step is to call someone you trust – your accountant, your lawyer, your rich aunt (after all she must be doing something right) and ask them to help you find your “math teacher” or someone like me. Your teacher is someone who can help you to put your complete financial picture together and assist you in moving confidently toward the future. Remember your teacher should be a “fee only” planner so they won’t spend your precious time trying to sell you something.
If you start now, you can create a plan that will work in your best interest and successfully guide you on a confident path to your retirement years. The important thing is for you to take control now and bid adieu as another financial myth bites the dust!
Good luck
