Is retirement still a reality? Yes, but it’s a shifting and evolving reality.
“Retirement” Is Outmoded:
Traditional notions of “retirement” are outmoded. In particular, the expectation that people should want (or be forced) to stop working at age 65 no longer makes sense in a world in which people live longer, live healthier as they age, and the ratio of old to young is considerable and growing.
Yet as longevity has increased over the past century, we’ve tacitly tacked all the added years on at the end. Apart from the undesirability of making “old age” the longest phase of one’s life, it’s unrealistic to expect that most workers will be able save enough over the course of a 40-year working life to fund a possible 30-year (or longer) retirement.
There should be no hard boundary on where work ends and retirement begins. Instead, we need to think in terms of a new “life script” that allows for greater flexibility, time off or part time work mid-career, more opportunities for education and retraining across our life course, and “phased retirement” in which people reduce their hours, shift into less demanding roles, and so on, but not abruptly leave the workforce at some pre-set (and arbitrary) age.
I officially live in a “HOT” place. No, I am not talking about August in North Texas. I am taking about the real estate in my neighborhood.
Just like many of you, I got sticker shock when I received my 2016 Notice of Appraised Value from the Dallas County Appraisal District. Since 2013 real estate in North Texas has been rising and I have experienced it. How much is my increase?
2013 Base year
2014 +3.27% Increase
2015 15.35% Increase (capped of course at “only” 10% for tax purposes)
2016 9.22% Increase
3-year increase = 27.84% increase in three years. OUCH
Check your mailbox. You are about to get a shocking notice from the taxman. No not the IRS, your local County Appraisal District. Don’t faint when you open the notice and see the increase in your property valuation.
All of these new Texan’s that are moving her for jobs are looking for and buying houses. With the inventory of new and resale houses at a historic low, it is simple economics. A lack of supply with an increased demand equals an increase in price.
How much are houses increasing?
According to several of the local county chief appraisers. the increase is spectacular. In Denton County, chief appraiser Rudy Durham says. “A decade ago first-time homebuyers were in the $150,000 range now it’s $250,000.”
But the real sticker shock is in Collin County where the average house will appraise for $312,000. That is a 9.5% increase over 2015, where the average house was $285,000 according to Collin County chief appraiser Bo Daffin.
What can you do?
Which is better for you?
Going to the Doctor when you are sick or going to the Doctor regularly for preventive checkups and maintenance?
Just like everything else in your life it is always better to be proactive versus reactive. Being proactive in retirement means getting the most from your 401(k) plan retirement plan.
These are my FIVE Steps for participating in and having a successful 401(k) whether you are a participant or the company administrator/fiduciary.
STEP 1 – Get the most from your 401(k) Plan.
In our life, we spend a lot of time thinking about problems. What if we say a magic word and make them all go away? Maybe we can.
The words aren’t like Dorothy clicking her red heels together and saying “There’s no place like home”. You don’t need Greek phrases or a special diet/pill you saw on the shopping channel to make it work, either.
Surprise is it not a four letter word, it is worse, it’s a simple six-letter word: growth.
What is growth? Dictionary.com defines it as:
The act or process, or a manner of growing; development; gradual increase.
The problem with growth is humans. We are not wait and see the gradual increase” type of people. We want it the FEDX way – delivered to our door immediately and yesterday.
Do you remember this FEDX add ? In this fast moving high pressured get it done yesterday world….this was from 1981