Financial Planners Must Push Supplemental Retirement Income
Financial Planners Must Push Supplemental Retirement Income
Recent statistics from the U. S. Bureau of the Census show that almost 75% of Americans reaching age 50 have less than $25,000 in net assets. This is a remarkable and very sad statistic. It means that, unless they do something drastic and very quickly, their prospects for a decent retirement are looking pretty grim.
From our society viewpoint, this means that, in the future, we will have more of a 2 class retired community – the ‘Haves’ and the ‘Have Nots’ and the latter will be in the majority. Government is going to have to find a way to better support the healthcare problems of this group as well as the financial burdens that they will put on the economy.
Certified Financial Planners have a very difficult job. While their job is difficult enough to show their clients how to save and prepare for their desired retirement lifestyle, it becomes almost impossible when the client has such paltry resources to work with. Good and sincere planners will work with their clients to help them understand the dire situation that they are in and suggest some pretty drastic measures to turn the situation around.
In order to have more in their retirement savings fund, people are likely going to have to downsize their homes, replace expensive financed cars with paid-for older models, and otherwise find ways to rid themselves of credit card debt. If the average American could simply save the amount that they currently spend on credit card interest, their retirement future would be much brighter! The difficulty is in getting from here to there.
When you are accustomed to dealing with wealthier folks on how to best allocate and invest their ample resources, it is a difficult transition in mindset for a lot of planners to shift gears. Many have chosen to ‘abandon the poor’ and to concentrate only on the wealthier of clients. In my opinion, planners have a moral obligation to assist everybody toward their proper retirement goal, and most CFP’s that I know are doing just that. This is very challenging, but they have the opportunity to make a huge difference in their client’s future.
As they go through skimping and saving for retirement, your clients probably won’t be immediately appreciative of the benefits of your advice. The famous radio talk host, Dave Ramsey, advised people to eat ‘beans and rice’ until their finances are straightened out. (He also suggests that, if this diet gets too boring, you can shift to ‘rice and beans’!
Planners, be assured that your sage advice to those of meager means is very noble and desperately needed. You probably will be suggesting alternative sources of income for your clients, also. In this area, please think ‘outside the box’ and consider showing them some of the many opportunities that exist today on the Internet.
We have been able to show many retirees how to earn a thousand or two thousand extra dollars a month to supplement their retirement. There is no reason why a 50 year old (or their spouse) could not have a small stream of extra cash coming for their retirement savings, too. The level of activity on the Internet is constantly increasing and there is plenty for everybody! They just have to take the time and look around. Be sure to advise them NOT to buy one of the many ‘get rich quick’ offers on the net. The idea is not to spend more money, but to earn more. It can certainly be done!
Resources: Don Seibert is a retired business executive who, as an Expert Author, writes timely articles, books and blogs on issues concerning sources of extra retirement income, Having retired twice, Don is host of http://www.RoadToEasyStreet.com. Visit the site for a complete discussion of Retirement Income Options.