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Jun 05
2008
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$1 Million Needed to Retire!Posted by tnewby in Untagged |
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$1 million dollars use to sound like a lot of money, but the more I live, the more I realize that it's not going to go as far as it use to.
Financial experts are now saying that the average American will need at least $1 million dollars to retire comfortably and that is living on 3 to 4% of the $1 million over a 20-30 year period.
Now, first let me say that I'm sure a lot of assumptions have been figured into that. For instance, your house would have to be paid for and having debt would be a "no-no" and of course, no travel and investing in your grandchildren or contributions to worthy causes. They are probably not figured into that factor either.
I'm very concerned in particular for African Americans who I feel aren't even aware of this fact and many of our people are making a decent income, but are living paycheck to paycheck.
What's worse is that the 20-30 year job is obsolete, so we are in trouble as African Americans represent a very large percentage of the "Baby Boomers" population. We will be facing the possiblity of having to work way past the 60 years of age zone and also the possibliy of having to once again depend on the government for housing, if we don't have enough money to get us through our retirement years.
So, what can we do about this and how can those of us who know what's happening make a difference in the African American community? Let me know what you think!
Daring to Dream!
Trina Newby
C0-founder
Black Business America
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I think so many people are in a situation where their wants have resulted in them arriving at a situation where they are relatively, and actually poor. When no provision is made for savings while one has a good job; when spending continues to exceed income , financed by more debt; when we want a lifestyle that we cannot afford -- these factors accumulate to place one on the verge of disaster. Then a real crisis occurs -- you lose that "good job" and you discover that your skills are a mismatch for the opportunities in the marketplace today.
No amount of money insulates people from these types of habits. I saw on TV tonight that "multi-millionaire Ed McMahon" is facing foreclosure on his home.
What we all can do is to exercise prudence and sensible financial management. It comes down to the adage, "A fool and his money are soon parted."