Leadership: Final Score

Some day you will reach a time when you get the final score on your career.

This is very important because many people ignore long term financial planning. As a result, they may be living their way into a financial disaster.

Here's why.

Once you retire, your future income will be essentially fixed. There will be no more promotions or bonuses. If you receive any raises, they will be modest cost of living increases, based on decisions that are beyond your influence.

Your income will come from three sources.

1) Pension. This will depend upon many things, such as years of service, maximum income, and your company's pension plan. If you worked as an entrepreneur, this payment will depend upon whether you set up a pension plan for yourself.

2) Social Security. This will depend upon how much money you paid into the Social Security system. If you had a high paying job over a long career, your payments would be the maximum allowed. If you paid less, you will receive less. And if you didn't make payments for at least 40 quarters, you will receive nothing.

3) Income from Savings. Ideally, your savings should earn enough income to: a) increase the principal at a rate that matches inflation, and b) provide any needed supplemental income in addition to your pension and social security.

Certainly, your retirement income matters. It determines the quality of life for your final years. It provides security and support. It also buys any special care that may be needed.

So, what do you do?

Here are two recommendations:

1) Obviously, maximize your earnings during your career. Otherwise, prepare a business or career that you can continue beyond the "normal" retirement age.

2) Work with a financial planner to develop a savings plan. This, by the way, requires spending less you make.

Key Point: Every day you are investing in your financial future. Make sure it's a future that you can live with.

Much success,

Steve Kaye

714-528-1300

Author, Speaker, IAF Certified Professional Facilitator

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