Deadly Retirement Planning

Deadly Retirement Planning

Deadly Retirement Acts Analyzed in This Article:

Deadly Retirement Planning, Saving for Retirement, Retirement Savings
  1. Number One Deadly Planning for Retirement Act
  2. The Number Two Deadly Retirement Faux Pas
  3. Deadly Retirement Planning Act Number Three
  4. Deteriorating Health is Very Deadly By Itself
  5. Yet Another Deadly Act We Might Face
  6. Deadly Retirement Subjects in Summation

The Act of Deadly Retirement Planning

Deadly retirement planning is not an actual oxymoron. It almost seems like it has something to do with morons. But we don’t like to, or need to, be mean.

Believe it or not, it is an actual, real-life possibility. And, it is happening, as you read this, to far too many people. A quick side note, deadly retirement planning doesn’t refer to funeral services either. However, by not planning for your retirement years, you will certainly set your retirement in funeral mode.

And, if surveys by AARP and the federal government are correct, there are plenty of folks in this country called America not taking the upcoming retirement years into consideration. Some of them are at retirement age. Others are closing in on retirement age. 

Sadly, at that stage of the game, it is a bit too late to have the light come on. They need a better idea and they need it now.

Number One Deadly Retirement Planning Act

The number one deadly retirement planning act on the list is: Not saving enough. So, if all the surveys I have seen are correct, retirement won’t be the golden years for these people.

Those surveys, by the way, also tell us there are people who have nothing saved for retirement. Can you imagine having absolutely nothing saved for a day you know is coming? I mean it is YOUR life we are talking about.

The only income source they will be relying on every month is Social Security. Imagine dooming yourself to a monthly pittance of 1200 or so dollars per month as your nest egg.

Incomprehensible to say the least. But sadly enough, it’s very true.

Now, you ready for the double whammy? What if all the Doom and Gloom prophecies are correct? And Social Security actually runs out. Hopefully this coronavirus pandemic has opened more people’s eyes to living life in the danger zone.

Ugh. I’ll be the first to admit, I’m certainly not jealous of that potential train wreck. Unfortunately it could be you riding that train. Get off at the next station and start remedying your situation.

Number Two Deadly Retirement Planning Act

Coupled with not saving enough or anything at all is the act of draining your retirement savings. You’ve set up a plan and contributed regularly. That is the good part. You started off on the correct foot.

Then one day you decide to drain the account. Your intention is to replace the money next month, next year or in the future. You may even believe what you are telling yourself is true. 

Whether you really believe it or not, your retirement savings pool remains drained. You have entered the danger zone and can’t find a way out. You dug yourself a hole and forgot to stop digging.

How Did I Get Here?

You may be wondering how in the world a person can end up in this particular situation. Consequently, the answer, more than likely, lies in the fact those folks never calculated a retirement savings goal.

We could call this:

Deadly Retirement Planning Act Number Three

They probably never created or set a goal. Because they found it too daunting to calculate how much they will require in retirement. They simply were overcome by the number of variables with which they had to deal.

After all, nobody knows if they will get ill and incur huge medical bills. Nobody knows if they will require long term care. The one thing they knew for sure, i.e. they will get old, they ignored.

In other words, nobody knows the future. But for those who gave these variables serious consideration they created a retirement program that can adjust to them. It is a retirement program that says what if. It is a retirement program that is partially if not totally flexible to handle almost any situation presenting itself.

This doesn’t mean the worst will happen. It means it is addressed and hopefully remedied via the calculated retirement savings goal.

Deteriorating Health – A Deadly Act All By Itself

One thing we can count on when we age is deteriorating health. Our health usually doesn’t simply denigrate in one fell swoop. It happens over time. And when it does it brings along something called health costs.

Given today’s health costs deadly retirement planning could mean bankruptcy or worse for some folks. That is not a preferred position to be in especially when programs exist to mitigate these costs.

Certainly, it is no secret health costs have gone up substantially over the last 50 years. Google health costs and read the data for yourself. It’s staggering.

Nobody knows if this coronavirus pandemic will leave lingering health problems. What we do know, is that we can financially prepare today. Just in case they smack us in the wallet tomorrow.

This means with the trend being in the rise direction people retiring today will face rising health costs. Prepare. Act. Adjust your savings account and mentality.

Long Term Care – Another Deadly Act We Might Face

I mentioned long term care costs above. The costs vary by where you live. Big cities on both coasts have extremely high long term care costs. That doesn’t mean those of us who live in between the coasts have next to nothing costs.

The current monthly costs range from $5,000 per month to over $8,000 per month. That is in America’s heartland for those wondering where the costs are so low.

Notice I said per month and not per year. By the way, Medicare doesn’t pay for long term care. So if you thought they do, your thinking is wrong. Reread your Medicare pamphlets and you’ll get a rude awakening.

What does that mean? It means you need to become familiar and knowledgeable in this arena. For example, the surveys of long term care costs says the average per year cost is close to $90,000.

A Conclusion Worth Considering

Hence these deadly acts lead us to a conclusion that shouldn’t be ignored. At least for those folks who are thinking ahead. Therefore anyone not factoring in the woes and wows of growing old will always be looking in the window. Subsequently, watching all the people who did prepare like a hungry stranger.

So go get your affairs in order. Take steps to protect yourself should you suffer any type of diminished capacity. Moreover don’t fool yourself into thinking it can’t happen to me.

So who do you think represents those numbers in the surveys? Yep, me and thee as they say.

I am not a lawyer or even play one on TV. Consult with a competent legal professional about the legal instruments you probably should have already in place. At least some time before old age sets in place. Above all the earlier the better I’m told though.

These instruments include wills, powers of attorney, trusts, durable powers of attorney for health care, etc. Don’t fall victim to the deadly retirement planning traps. So get off your duff and smell the old age winds heading your way.



Senior Outreach Ministries achieves it’s objectives with the capital we’ve either earned or received from donors. The Proud 2 B A Senior Ribbon for example. Donate $5, get a ribbon and help us help a hungry Senior Citizen in need. All proceeds remain in the Ministries to be used per our mission statement. We are a volunteer church. No one receives a salary or wage. Please help us help less fortunate hungry Seniors. We never have and never will ask the government for grants, funds or hand outs. Thank You in advance.

**DISCLAIMER**

Senior Outreach Ministries makes no warranty, representation, or guarantee regarding the information contained herein or the suitability of any products and/or services for any particular purpose. Any performance specifications are believed to be reliable but are not verified. Buyer must conduct and complete all performance and other testing of the products and/or services, alone and together with, or installed in, any end-products and/or services. Buyer shall not rely on any data and performance specifications or parameters provided by Senior Outreach Ministries. It is the Buyer’s responsibility to independently determine suitability of any products and/or services and to test and verify the same. Senior Outreach Ministries does not assume any liability whatsoever arising out of the application or use of any product or service. And in the name of full disclosure one should assume any ad they click on or purchase they make will provide us with a small fee. This is not added to the purchase price of any item or service you purchase. It is however one of the ways we fund the help we provide to seniors and their caregivers. Any recipients of our help as well as our staff thank you and appreciate you greatly.

The Rainy Day Dime

The Rainy Day Dime

The rainy day dime isn’t a fancy theory that just got invented by a financial guru. It has been with us ever since humans figured out they must save for their retirement.

While that may be the case, I bet you never heard of the rainy day dime. That’s because it is a twist on one of my mother’s oft repeated pieces of advice. She would always tell me to save something for a rainy day.

The Rainy Day Dime, Saving Money for Retirement, Saving for retirement

She was telling me that some day I would be old. And trying to help me understand that if I didn’t have any money saved I’d regret it.The saving part in this process is painful for far too many of us.

And it turns out she was right. I needed to put money away for my stretch in the old age cycle of life or I’ll be SOL.

She was also big on acronyms.

Therefore, a catchy term first of all gets attention. Attention usually results in reading about it. Reading about it usually results in action taken.

Unfortunately for me I didn’t heed her advice until I turned 40. So apparently I was a slow learner. Boiled down to its most basic property the rainy day dime is me and you saving ten percent of every dollar we make.

That’s it. End of story. Unless of course you want to learn what is the secret sauce underpinning your dime.

Like all good programs secret sauce must be an ingredient, or why do it? And, it is the secret sauce that turns the rainy day dime into a huge rain barrel of dollars. And above all else, that’s a really good thing.

A Rainy Dime is How Secret Sauce is Made?

The financial experts tell us to start at an as early as possible age. And not to wait until we are 40 or 50 or later. So, this article is an attempt to spur you into saving something at an early as possible age. If you are 20, start now. For example, if you are 30 you should have a ten year savings track record by now. And if you are 40 you should have a 20 year track record.

And no, I won’t keep going up by ten year increments. I’m sure you get the picture. Besides you can do that in your own mind without any help from me.
The title of this article is, “The Rainy Day Dime”.

All you’ve heard about so far is the rainy day. Where’s the dime, right?

The dime actually refers to the number 10 as expressed as a percentage as in 10%. That may be cute but at the same time it is also dead serious. Take a minute to think about it.

For example, say you put away a dime from every dollar you earned each and every month. To make the math easy let’s say you earned $2000 a month. If you multiply $2000 by 10% it means you put away $200 every month.

Let’s say that $200 never earned a penny in interest and you started when you were 20. Quick math tells me you’d have $108000 in your savings account at the age of 65. Now imagine that number. Moreover, can you visualize that number?

You didn’t do a darned thing except save and it grew like the weeds in your garden. Because most of us want to have a bigger nest egg we do not place our money in non-interest bearing accounts. Why would we do something as dumb as putting money in non-interest bearing accounts, correct?
Therefore, we make an attempt to find the best interest bearing account for our money.

This article isn’t meant to zero in on any particular account. It is meant to add the magic sauce to the already magic rainy day dime.

So, Compound Interest Makes Secret Sauce?

That sauce is called compound interest. If you do not know what compound interest is go to your favorite search engine and perform a bit of research. It is truly The 8th Wonder of The World.

Compounding happens on an annual basis with most savings accounts. Mathematically speaking if you place $1000 into your account and it is paying 8% at the end of the year your account balance will be $1080 ($1000 X 8% = $80. $1000+ $80 = $1080).

In the second year and beyond the compounding factor, in this case the interest rate, is applied against the balance. It looks like this: $1080 X 8% = $86.40. The $86.40 is added to the $1080 giving you a new balance of$1166.40. This happens year after year after year.

I’ll let you do the math for the next 43 years in this scenario. Or, use one of the compounding formulas on the Internet. Either way you will experience what is commonly called the WOW factor.

Some Final Thoughts

You know, when you see the balance at the end of the 45 year time period you say, or shout, WOW! Of course not all of us have a time line of 45 years. If you start when you are 40, you only have 25 years.

This means you have to increase your deposit amount from a dime to thirty or forty cents in order to enjoy the WOW factor. Regardless, you can still call that amount your rainy day dime.

So, get out there and start saving for retirement. Or at least a rainy day.



Senior Outreach Ministries achieves it’s objectives with the capital we’ve either earned or received from donors. The Proud 2 B A Senior Ribbon for example. Donate $5, get a ribbon and help us help a hungry Senior Citizen in need. All proceeds remain in the Ministries to be used per our mission statement. We are a volunteer church. No one receives a salary or wage. Please help us help less fortunate hungry Seniors. We never have and never will ask the government for grants, funds or hand outs. Thank You in advance.

**DISCLAIMER**

Senior Outreach Ministries makes no warranty, representation, or guarantee regarding the information contained herein or the suitability of any products and/or services for any particular purpose. Any performance specifications are believed to be reliable but are not verified. Buyer must conduct and complete all performance and other testing of the products and/or services, alone and together with, or installed in, any end-products and/or services. Buyer shall not rely on any data and performance specifications or parameters provided by Senior Outreach Ministries. It is the Buyer’s responsibility to independently determine suitability of any products and/or services and to test and verify the same. Senior Outreach Ministries does not assume any liability whatsoever arising out of the application or use of any product or service. And in the name of full disclosure one should assume any ad they click on or purchase they make will provide us with a small fee. This is not added to the purchase price of any item or service you purchase. It is however one of the ways we fund the help we provide to seniors and their caregivers. Any recipients of our help as well as our staff thank you and appreciate you greatly.

Pay Off Your Debts in 5 Simple Steps

5 simple steps to pay off your debts is merely the starting point. The actual, real-life ending point is step 6. Don’t repeat what put you in debt in the first place.

Pay Off Your Debts

We all realize debt is always there. We can live in a cave and by golly we will buy something on credit and be in debt. Darn it, right?

In fact, I once said credit is merely debt spelled a different way. Think about it. The minute you swipe your credit card you have entered into the nether world called debt. And you stay there until the amount charged is paid in full.

Pay attention to the last part of the previous sentence. Your debts have to be paid in full or you will wreck your credit. And that’s a whole different world of hurt.

So, let’s start getting into Pay Off Your Debts in 5 Simple Steps. And the first step in the 5 simple steps is actually a pretty easy one. In fact, you can do it several different ways.

Pay Off Your Debts STEP 1 – Stop Adding to Your Current Debt

For starter’s, when you receive your credit card bill, you pay the balance owed. This way you avoid interest charges, service fees and any other fees credit card companies charge. This is one important way you won’t be adding to your debt. Interest is bad enough, but fees can kill you.

Have the discipline to not add to your existing debt by buying more stuff. Especially since chances are most of, or at least a good chunk of, your debt is for stuff you can live without.

Pay Off Your Debts STEP 2 – Review All The Statements From Your Debts

Make sure you review your loan and credit card statements. And any other statements you receive in regard to one of your debts. You want to know your balances, interest rates and payments. These items tell you how much you owe.

It’s very important information to know if you are serious about paying off your debt. You’ll be able to figure out which ones need immediate attention and which ones can get smaller payments.

Pay Off Your Debts STEP 3 – Reduce and Eliminate Expenses

Start looking for ways you can reduce or eliminate expenses. Most of us find extra money via birthdays, holidays, part time jobs, etc. If you are one of
those money finders, use those dollars to help pay off debt faster.

You’ll be ahead an exponential dollar amount if you do.

Pay Off Your Debts STEP 4 – Pay Off the Highest Interest Rates First

This one should be obvious but sometimes people simply don’t think in the obvious. Pay off debts with the highest interest rates first.

Why?

Do the math and you’ll discover that a high interest rate equals more dollars out of your bank account.

You’ll save money by getting rid of the interest rates that are sucking your money up. Debts with lower interest rates can receive smaller payments while you get the larger interest rates paid off. Simply put, the smaller interest rates aren’t costing you as much. Yet.

Pay Off Your Debts STEP 5 – Discover Ways to Save

This is the simplest step to pay off your debts. You want to discover ways to save money. Many have used the debt consolidation principle. They start by using the tip in step 2.

They determine how much they owe and then get a loan through their bank or credit union for the full amount. Then they pay all their outstanding
bills and don’t incur those charges again.

Now You Have a Different Problem

Now you have a different dilemma. What do you do with the excess money from the consolidation loan? Well most people put it away in savings.

Here’s the math: let’s say the loan you took out to consolidate your debt was $7,500. Now instead of a $1,000 a month going out to all the different debts you only $500 to the single loan. That means you would have an extra $500.

DO NOT spend the newly freed up $500. Put it away in a savings account. Or an investment vehicle that bears interest like an annuity. Now that money can start working for you instead of against you.

Some people have an emergency fund they keep hidden. Start putting the extra money in there every month. The important part is just DON’T TOUCH IT!! Your not touching it will be what makes the difference. Using our example, after a year, you’d have $6,000 saved. After 5 years you’d have $30,000. Not too shabby, ey?

An Important Note:

If you have built an emergency fund, never, ever, spend these dollars to pay your debt. It is an emergency fund for a reason. You never know when
the car will need new brakes or some other unexpected surprise will visit you. Save those dollars so you won’t be forced to add to your debt.

Final Thoughts

These 5 simple steps will pay off your debts. They can all be fleshed out into better detail. You know you’re situation better than I do. There are other ways to improve your savings or where you can find money.

However, I believe you get the idea. Know what you owe, don’t add to it and pay it off. These simple concepts are really what paying off your debt boils down to.



Senior Outreach Ministries achieves it’s objectives with the capital we’ve either earned or received from donors. The Proud 2 B A Senior Ribbon for example. Donate $5, get a ribbon and help us help a hungry Senior Citizen in need. All proceeds remain in the Ministries to be used per our mission statement. We are a volunteer church. No one receives a salary or wage. Please help us help less fortunate hungry Seniors. We never have and never will ask the government for grants, funds or hand outs. Thank You in advance.