The Words We Don’t Want To Hear: “You May Need To Save More”

I really think over the next five years the whole notion of retirement planning is going to change.   The X and Y generation don’t think about retirement the way their parents or grandparents did.   Since so many more people are staying active during their golden years, the next couple of generations will be thinking more about making work option than pulling themselves over to the retirement shelf.    What still holds true for most us is that since companies don’t really often pensions anymore, it’s up to you to figure out how you can save enough money to do what you want when you want irrespective of cost.    No matter what you calculate your ‘work’ optional number to be you should remember that you only have four options should you start falling short of hitting those numbers.  Here are your four choices:

Extend your time frame  – If you planned for your ‘retirement’ goal to be at the age of 60, one option would be to push back the date of the goal to 62 or 65.    This will allow your nest to have more time to potentially grow for your planned age of making work optional.

Reduce your goalIf you originally set a goal of wanting $8,000 per month of retirement income, you can reduce your goal to a lower number. You will really need to assess what your fixed expenses are versus your discretionary expenses to see what you really need in order to be able to live your life the way you desired in ‘retirement’.  If you carry a big mortgage into retirement, this may not be an easy option.

Get a better rate of return – If you think you are behind on your goals, once option is to shift your asset mix to attempt to get a better rate of return.   This means shifting your asset mix in the hopes of raising your rate of return from 4% to 10%.    However, as we have seen in the past 10 years, it is also possible that your assets could earn only 1% or 2% rate of return.

Save more – This is the one option that most people don’t want to hear because it means changing your lifestyle.  It means making sacrifices today to put away dollars for your future goals.   If your income and cash flow are increasing, it also can be the most controllable if your lifestyle doesn’t outstrip your income.

You’ll see all sorts of articles around retirement and making work optional, but in reality it all boils down to some really simple options.    Nobody wants to hear the words ‘save more’.   Especially because it might blow that trip to Europe or the birthday party for your kid that costs more than it should for a  10th birthday.    I am here to tell you that with markets and economy being uncertain, it’s a habit you are going to want to get into if you really want to make work optional one day.  Take 1/3rd of any future bonus or raise and bank it.  It’s that simple . . . bank it.   Unless you’ve got visions of grandeur of being a Starbucks barista or a Wal-Mart greeter in your 70’s, those words of save more may not sound so bad.

Author Info:

Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®

Co-CEO and Founder of oXYGen Financial, Inc

Visit to www.oxygenfinancial.net to request a free consultation with the leading financial experts for people in their 20’s, 30’s, and 40’s in the country.

Securities and Investment Advisory Services offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Oxygen Financial is not affiliated with NFPAS. NFPAS does not provide tax or legal advice.   This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Advisor Services, LLC (NFPAS) may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact NFPAS Compliance Department at 512-697-6000.   PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. NFP Advisor Services, LLC makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is NFP Advisor Services, LLC liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.

About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves


My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

Background and qualification information is available at FINRA's BrokerCheck website.

No Comments

Leave a Comment