Stop, No One is Going To Retire You

The coronavirus may cause you to delay retirement

Retirement could be a few years from now or a couple of decades away for you. If you want to retire early or on time, you need to take control of your finances. How you manage your finances today will determine if you even retire, at all.

Statistics show many people retire but need government assistance or assistance from their families. Then another group is working in retirement when you should be sitting back and enjoying time with your grandkids or traveling.

When you don’t invest in your future, you’ll likely end up relying on someone during your retirement years.

When do people retire?

Dare to live the life you dreamed for yourself. Go forward and make your dreams come true.

Ralph Waldo Emerson

Chris Hogan of the Dave Ramsey team said people retire at the age of 62.

He added most people retire between the ages of 55 and 65. Retirement can be tricky for some as some will go start a second career, others will work part-time, and some will go back to school.

Retirement can be scary since most people have worked for more than half of their lifetime.

Where do you want to be when it comes time to retire?

401Ks were suspended again

The best investment you can make, is an investment in yourself…

The more you learn,

The more you earn.

Warrn Buffett

When the coronavirus emerged in the United States, I read that companies suspended their 401 K contributions to their employees. The same actions happened in the 2001 recession and 2008 crash as companies suspended their 401K match.

401Ks are retirement plans that many companies offer their employees.

This year 16 large companies suspended their 401K contributions. Some of the companies were Marriot Vacations, Tenent Health, and Amtrak. The total number of personnel affected were 148,155.

Your retirement age could be delayed

In any investment, you expect to have fun and make money.

Michael Jordan

If you were planning to retire at 62 or whatever age you imagined, your retirement could be delayed.

The crash in 2008 delayed retirement for 23% of people who planned to retire. The cause of the delay in retirement was the economic insecurity of people after their savings were decimated.

As soon as some companies reinstated their 401K match after the 2001 recession, within a few years a financial collapse hit the economy in 2008. Then 12 years later another crash hit retirement accounts though many are still recovering to their peak.

Don’t put all your eggs in one basket

An investment in knowledge pays the best interest.

Benjamin Franklin

If your 401K is your main source for retirement, I encourage you not to rely on this source. Times are tough. You may have to look at other options for your retirement.

During the Great Depression, the market dropped 89% and it took 34 months to recover. Then in the Great Recession, the market dropped 49% and it took 16 months to recover. This year the market dropped about 28% and some stocks have recovered but many haven’t.

The current recession is not going away anytime soon. There is talk of the economy collapsing even more. Then who gets elected president in 2020 could also be a big impact in your future. More companies may go out of business taking whatever money you saved in your retirement with them. There is no guarantee that you’ll get a severance check from them.

Some recommendations

Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.

Robert Kiyosaki

I hinted earlier what you should do. This is the time to look at other options.

Some of these different approaches come to mind.

• Cryptocurrencies.
• Real estate investing.
• Silver and gold investing.
• Open your own stock investment portfolio.

In any investment, there is risk, some more than others.

I don’t mean to scare you, but want you to take your money seriously. Times can change very quickly as you have seen what happened in 2020.

Time is a big factor in what direction you decide to go. Any of the options I mentioned will require work and effort on your part.

Don’t let the economy affect your future. If you haven’t taken retirement seriously by now, then you should.

Has the coronavirus caused you to alter your investment plan?

Resources used:

What is the Average Retirement Age? — Chris Hogan on Dave Ramsey.com 24 September 2019

2008 market crash delayed retirement for 23%-Business Management Daily.com December 22, 2014

Employers starts to suspend their 401(k) match-Alicia H. Munnell on Market Watch.com August 6, 2020

Market Crashes Compared:-28% Corona Virus Crash Vs. 4 Historic Market Crashes-Trefis Team and Great Speculations on Forbes.com

Tom Handy is a top Finance, Investment, and Bitcoin writer on Medium, and the father of two kids. He retired from the Army and sits on several non-profit boards. You can find him on Twitter @tomhandy1.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.