The concept of retirement planning is relatively recent in human history.
Let’s face it, for most of human history there was no such thing as “retirement.” People’s lives were shortened by hunger, disease, childbirth, wars, and accidents. A relatively few lived to a ripe old age. For those who did, the plan was to have enough children who would support them when they became too old to work.
In the lifetimes of our parents and grandparents, pensions were created that provided an income after leaving work. And, of course, social security made its appearance in the 1930s to supplement savings and pensions.
Due to poor investment performance companies realized that they could not continue to pay generous pensions for thousands of retirees so they who dropped them in favor of 401(k) plans, taking the burden of providing retirement income from the employer to the employee. Even governments are finding that there is a limit to their ability to tax and pay people in retirement. There are many ways people can take care of their retirement income needs: 401(k)s, IRAs, and the ever-faithful investment account.
The generation that can count on pension income for their retirement is now retiring. The younger generation now has the responsibility to take care of its own future. This makes retirement planning more important than ever, and no place for amateurs. Give us a call to help you meet your retirement goals.