Yes,You Can Retire––Money Matters with Ken Moraif

Yes, You Can Retire

By Ken Moraif, host of the radio show, Money Matters with Ken Moraif, Collin County LIVING WELL Magazine

Many Americans don’t expect to ever retire: That’s the headline of a recent USA Today article about the annual Wells Fargo Middle Class Retirement study, which surveyed 1,000 middle-class Americans between the ages of 25 and 75. Journalist Rodney Brooks reported on the study’s findings and interviewed several financial professionals, including yours truly, about those findings. “In a sign of just how bleak retirement prospects have gotten,” wrote Mr. Brooks, “more than a third of Americans say they will have to work until they literally can’t anymore. A new Wells Fargo study found that 37% of people don’t ever expect to retire, but instead will have to ‘work until I’m too sick or die.’”

I think that’s terrible, but I also noticed two survey findings that were not only relevant to retirement planning, but could help people to feel optimistic about their chances of retiring. The first was “the plan effect.” The study found that people ages 40-59 who had actually created a financial plan not only had a positive outlook about retirement, but had twice as much money as people with no plan. These are all middle class people, so it’s not a difference of income. The lesson is obvious: if you want to retire (or stay retired for that matter), a properly designed financial plan can be incredibly important.

The second finding that struck me was that 52% of people who responded to the survey said they don’t invest in the stock market because “I am afraid to lose my nest egg in the ups and downs of the market.” Why are people so afraid of the stock market? I believe they’re scared because they took a bath in 2001 and 2002. They built their money back up, and then 2008 came along and they took another bath. They’ve been badly burned twice in a row and don’t want to go through that pain again. I don’t blame them. But there’s a misconception behind that statement from the survey, “I am afraid to lose my nest egg in the ups and downs of the market.” People don’t lose their nest eggs in the ups and downs of the market, just the downs. That’s why we at Money Matters preach the importance of an exit strategy. If you knew you had a defined point where you would get out of the market and protect your nest egg, wouldn’t you feel more comfortable about investing in the market? I suspect so, and I bet if the Wells Fargo survey had asked that question, people would respond that they would feel better about investing—and retirement.

If you are 50+, retired or retiring soon and would like more information about The Money Matters Exit Strategy, please attend an upcoming free Money Matters seminar. Seminars fill up so reserve your spot!!! Go to www.MoneyMatters.net for dates, locations and to register or call 800-994-0302. Come hungry and enjoy our World Famous Oatmeal Raisin or Chocolate Chunk Cookies.

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Listen to Money Matters with Ken Moraif every weekend on the following Radio Stations: WBAP News/Talk 820AM/96.7FM, KRLD News Radio 1080, WRR Classical 101.1, 770 KAAM, and 660 The Answer.

About The Author: The host of the popular radio show, Money Matters with Ken Moraif, [C1]  Ken specializes in retirement planning and offers free seminars [C3] that help attendees learn to plan their retirements and secure their investments. A certified financial planner, Ken also heads the financial & retirement planning firm Money Matters[C2]with Ken Moraif.

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