I’m Drowning in an “Ocean of Despair” – What Should I Do?
I’m Drowning in an “Ocean of Despair” – What Should I Do?
The devastating Crash of 2008 only happened 2½ years ago, and although the economy is making a slow but steady recovery, a lot of investors haven’t yet recovered the substantial sums of money they lost in that economic tornado.
In January 2008, many Americans said to themselves, “I’m going to retire in 3 years!” not knowing that despair was lurking right around the corner. Fast forward to the present, 3 years later… many of you are physically and emotionally ready to retire but your assets will not permit it.
You’re Not Alone
Under such circumstances, it’s only natural to despair. But if it helps any, do know that you are not alone – there are literally millions in exactly the same position and age bracket as you, whose retirement funds took a big hit in 2008 and still haven’t recovered.
I was recently out to dinner with a friend and he pretty much told me the same thing. As I dug into my entrée, he told me that he has only about $150,000 in savings, he’s underwater with his mortgage (i.e. his house is worth less than what he bought it for), and DC0-261 to top it off he’s 62 years old!
Now if you’re anything like me then you may be thinking, “Oh boy, that’s a really tough position to be in”. And you’re right.
But, thankfully, my friend was not shying away from his reality and even had the courage to bring it up with me. I thought that that in itself was highly encouraging.
So I candidly told him, “Things are not as bad as they seem. There are several solutions to your problem. Don’t feel alone; there are hundreds of people in the exact same situation. Every decision from this moment on is of critical importance; literally life and death.”
There is Hope
Like my dear friend, you too may be feeling as though you’re treading water in an endless ocean, and praying for a life preserver or a boat for your rescue. Or you may be wondering how and when you’ll ever get back to land and stand on your feet again.
Let me be the first to tell you – help is here, there is hope! There is a solution to every problem. The important thing is figuring out that solution and implementing it. (And no, I don’t say this meaninglessly; as most politicians do… my words are for real.)
Much of this fear stems from uncertainty about the future. And a sure-fire way of reducing this fear is to have a definite picture of the future and to know what to do NOW to paint that picture clearly.
Action Steps
1) Address the fear – Knowing is better than not knowing.
2) Recalibrate – Pare down your expectations and lifestyle preferences, and determine the exact amount of income you’ll need during retirement, given your strained finances.
3) Visualize your future, deal with reality and make tough choices today to make that future come true.
There is financial planning software that can help you with this. It considers variables such as desired retirement age, preferred dollar amount to be left for your children, desired standard of living, etc. And then determines the probability of you actually achieving these goals based on your current assets and your anticipated earnings before retirement.
Increase Your Chances
At this moment, you may have only a 30% chance of achieving your retirement goals. But know that there are ways of increasing that percentage. For example, instead of planning to leave $X to your children, plan to leave ½ of $X, doing this could increase your odds of retirement success to 65%. If you work a little longer and push out your retirement age from 62 to 68, you improve your chances to 85%. Finally, if you adjust your standard of living in retirement, you’re almost there. Downsize your home and reduce your monthly mortgage by one-third, and you’re at a 95% success rate!!!
As you can see, problems are only problems if you can’t find and PW0-204 implement solutions.
We Can Help
If you’re still unsure and need some reassuring that all will be well, or just need a trusted guide to get you back to land, feel free to give me a call. We can tell you exactly what you need to know, without any ulterior motive or agenda. And we’ll give you the straight scoop, un-garnished. You will know if there is an opportunity for rescue or not. You will have a clear picture of the future and what you need to do NOW to make your future a lot brighter.
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