I have to chuckle about a conversation I recently had with a friend I go walking with. She shared she wants to retire in the next five years (she is 55, ~two years younger than I was when I retired). My DF is VERY tired of working but wants to repaint her house before she retires and says she needs to save up for it. I asked if she had used any of the online retirement calculators and she said she had not.
"You might want to check some out..." I told her... "A calculator can help you analyze your budget in relation to your retirement income, so you have a good handle on when you can retire. There are lots of calculators available online..."
"Budget? Oh, I don't have a budget. Except for the mortgage, I like to pay cash, and when I make an ATM withdrawal, as long as there's a decent balance in my account, I'm good. I think having a budget is too much trouble, so I don't bother. I'd never be able to stick to it anyway. I know where I am financially, more or less."
"Hmm. Okay... well, good luck with your retirement plans..." I say no more. What's the point? Yes, some people definitely have simplified view of retirement planning. Now I wish I had asked what she considers a "decent balance" in her checking account.
Using the "B" Word
November 20th, 2009 at 12:29 am
November 20th, 2009 at 01:34 am 1258680886
BUT, the fact that she needs to save up for one large repair, first, doesn't sound so warm and fuzzy, eh? Seems like an odd comment. Like, "I want to pay cash for a new car before I retire," well that makes a little more sense. Maybe you hope not to car shop again, etc. How much does it cost to paint a house? Seems like it wouldn't be that much?
November 20th, 2009 at 03:52 am 1258689178
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