We all wish for the gift of living to an age where we have the privilege of retiring. After many years of working and producing, the idea of being free, (physically, mentally, spiritually and financially), to add life to our later years. Over the next series of blogs, we will explore the life long journey to what society touts as the “Golden Years”, so you can be on your way to retirement planning.
There are many myths and misguided representations of this journey towards the road sign “retirement”. There is a myth of a utopian outcome, a holy grail and happiness ever after. Much of the pictures and images used to encourage us to plan and save for retirement sell an ideal outcome. Few marketers map the rocky and complex journey one takes towards retirement.
The first issue is that the road to retirement begins once we start working. Working life and life in general is about constant change and navigating many potholes. The first and most basic mistake many humans across the world make in out employed youth is having no idea about the concept of linear time and the impact this has on money and the magic of compounding. Warren Buffett was asked how old he was when he began investing. He said something like, “I was 15 years old”. The next question was do you have any regrets? “Yes, I should have started at age 9”.
Because of constant change life is dynamic and different every day. Yet the basics stay the same. The more things change the more things stay the same. So, what changes and what stays the same on this journey to retirement. To map and give an example of this journey Is difficult. Each person journey is personal and every person will have joys, successes, challenges and failures travelling from youth to retirement. So much will in the material world will change. In fact, everything will change. Some changes will be subtle and incremental, and some will be fast and monumental. Some will advance the path to successful “retirement” and will devastate the path to success. Many change factors will be external to the individual journey. Most of the factors that devastate and retard our journey to retirement are our own issues, our own decision making and the lifestyle we live.
So, in saying this there is no better time than now to open a savings account, and start putting money into it. Over time, this will ensure when you reach your journey’s end, it will all be worth it.