As I pointed out in my last piece, most of us tend to spend more time planning for a one-week vacation than for our entire retirement. This, despite the ongoing analyses informing us that most American workers are falling short on their retirement savings.
Why is that? For one, it’s hard to know how much you should be saving. Plus, a part of you may not want to know. What if you don’t like the answer? So, you put off planning for another day. Then another. Until … you approach retirement with no plan at all.
Question #1: How near or far are you from achieving your retirement savings goals?
Question #2: Where are you going on your next vacation?
If you’re like many Americans, you’ve probably spent more time planning the date, destination, travel arrangements and costs for your next brief getaway than charting out your retirement saving plans.
In my 30+ years in the financial industry, I’ve spoken with countless investors who, countless times over, were convinced that the stock market was about to crash. Every so often, they’ve been correct, at least temporarily.
But I’ve also noticed that the markets have always eventually recovered and continued their long-term ascent. For example, in the early days of Jimmy Carter’s presidency, the S&P 500 Index was at about 100. Today, after 40 years, continuous global unrest, hyperinflation, banking crises, 9/11, Bernie Madoff and many other upsets come and gone … it’s hovering around 2,400.