March 27, 2015 — If you are a sales or marketing rep in the timeshare industry it is highly unlikely, globally speaking, that you have an employer-sponsored retirement plan of any sort. Sure, you may be making the big bucks ‘today’ but like Jim Morrison of The Doors fame once warned us all with his 1970 hit Road House Blues, “the future’s uncertain and the end is always near’. And even if you do have an employer-sponsored (or other) retirement plan – consider the following.
So Here’s The Scoop: Living in a financial comfort zone when retired is very challenging to secure for most hard-working people. If, for example, we think $1 Million is a nice nest egg to have set aside, then if we live to be 80 years old we would need to save about $34 each and every day for all 29,200 days every single day of our life, from the delivery room to our 80th birthday, to have that ‘cool mill’.
Of course most of us don’t start our full time working years until the age of 18 to 24 years old so there’s not much of a chance we were able to save any money during those years spanning the first two decades of our lives.
Hence, if we started working full time at age 22 and we wanted to retire at age 65 with at least a million dollars tucked away then, excluding any investments that paid us a return, etc, and starting our first day on the ‘job’, we’d need to save about $64 each and every day – all 15,695 of ‘em.
And today, if we are (e.g.) 45 years old and just getting started in ‘the biz’ and have not put much aside towards the ‘golden-years’ but desire to retire at age 65 with that million dollar nest egg, then starting today – and for the next 7,300 days (including weekends, holidays, etc.) – we need to ‘bank’ about $140.00 each day – $980 each week – $4,258 each month – about $51-K annually.
Sure, we’ll have an SS check down the road but living on SS is not a pleasant place to be, and quite honestly that example of starting today and saving up a million dollar nest egg for 20 years from now – well, a million bucks two decades from now will buy a lot less than it will today.
And then there are all the future unknowns, from the political atmosphere decades from now with new laws that may affect our earned social security benefits, etc. to the ‘business’ (market) climate that could possibly jeopardize any retirement income from a 401-K, profit sharing schemes or pension, etc.
I would surely be remiss not to point out that in the United States of America even if we save up a couple million (cash) for retirement the single biggest factor that still causes people to go into bankruptcy – wait for it – is medical bills (debt).
That is because most of us are under-insured. And as for the ACA (Affordable Care Act) and/or other such ‘government’ deals – well, that goes back to the future “political atmosphere”; today there are those in power (Congress Critters) who want to abolish all such safeguards.
I’ll leave you today wishing you much health and success – and with what the future costs of some ‘stuff’ will likely be 20 years from today.
- Average new car today about $30-K – 20 years from today – about $52,000.00
- Average weekly food budget for two today $180 – 20 years from now – $316.00
- Average vacation budget today $1,850 – 20 years from now – $3,233.00
- Average monthly rent today (U.S.) $1,200 – 20 years from now – $2,100.00
Hey, I’m not trying to ‘neg’ anyone! Just remember that to be forewarned is to be forearmed – and that people don’t plan to fail – they fail to plan!
Good Luck Out There
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Contributing sometimes extravagant, bombastic, emotional, pompous or even pretentious writings about the timeshare industry, Scoop covers an array of industry related subjects each week including inside information, tips, scandals, interviews, forecasts as well as new (good or bad) products and services — and, of course, all the ‘Good’, the ‘Bad’ and the ‘Ugly’.