Newspapers / The Charlotte Post (Charlotte, … / June 24, 1993, edition 1 / Page 25
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Thursday. Tune 24.1993 - THF CHART.DTTF POST - Paee IIC Retirement Shouldn't Be Hard Work By A1 Grier RETIREMENT should be a time to relax, free from financial worry. Most people dream of It as a time to travel, a time to pursue hobbles or special Interests that a 9 to 5 job hampers. But without careful retirement planning, many people may actually face the prospect of work ing harder and longer during their so-called retirement years than they ever Imagined. A survey by the Social Security administra tion has shown that on average, retirees In 1990 received only approximately 45% of their Income from Socli Security and pension bene fits. The greater portion of this retirement Income was provided by personal savings/Investments (28%). examining the extent of our personal savings. The time to work at retirement comes weU before the age 65. Careful planning can help to ensure security and comfort In retirement, along with the resources to pursue new Inter est. With proper retirement planning, time Is on our side. It Is never too early to begin saving and never too late to start In fact, the advan tage of early retirement planning is that the longer we have before retirement, the greater our opportunity to Increase our savings through compound growth. Equally Important considerations for retire ment planning are the ever-present reality of Inflation and taxes which can quickly shrink even a substantial savings total. For example, a relatively modest 4% Inflation rate, main tained over 15 years wUl reduce the purchas ing power of $250,000 to $138,816. These are far-reaching Implications for our personal com fort and security. Age You Begin Saving Yearly Investment Total Contributions Interest Accumulation Savings at Age 65 35 $1,834 $55,020 $194,980 $250,000 45 $4,887 $97,740 $152,260 $250,000 55 $16,455 $164,550 $85,450 $250,000 Al Grier CLU, ChFC is a registered repre sentative with the Equitable Life Assurance Society (ELASJ, 6100 Fairview Road, Suite 200, Charlotte, JVC 28210, (704) 556-9988. Without realizing It, we write ourselves, and our families an lOU, payable In the year we retire. An lOU for the same standard of living we’ve enjoyed during all our working years. Most Individuals wUl need 65-80% of their pre retirement Income to maintain their lifestyle In retirement. Traditionally, Social Security, pensions, and personal savings have been the three main sources of retirement Income. Social Security will provide a certain percentage of this lOU. For many of us, a retirement plan at work will also contribute substantially. It may provide from 10% -60% of our total retirement Income. But for most people, both of these sources do not come close to providing enough Income to maintain the lifestyle to which we've become accustomed. Certainly not enough Income to provide the extras we look forward to. The following chart Illustrates the benefits to save at age 35 versus ten or twenty years later. This chart represents the yearly Investment required at a 9% return to accumulate $250,000 by age 65. As shown hi the example. If we begin saving at age 35, nearly 80% of the total savings comes Irom Interest accumula tion. However, savings started at age 55 results In only a 33% Interest accumulation. There’s a good reason to be concerned about buUdlng a strong retirement nest egg. Personal savings and investments have always been Important for financial security, but now they become more Important than ever. Economists and sociologists point to demographic and financial trends that wUl impact our lives In dramatic ways hi the decades to come. These trends require us to take greater Individual responsibility for retirement planning by re- Specialty Stores and Boutiques Cljatlotte The Place To Be Seen!! To Advertise Call 376-0496 li NEED MONEY? CONSOLIDATE THOSE BILLS TO ONE LOW RATE AND ONE LOW PAYMENT PLUS DEDUCT THE INTEREST 1st and 2nd Mortgages, Consolidations and Home Improvement Loans NO OUT OF POCKET EXPENSES, Call today for a FREE Analysis An Equal Opportunity Lender Creative Funding Company 1520 Iris Drive • Charlotte, NC 28205 • (704)332-1179 ARE YOU YIELDING The Most Competitive Return? Review Your Current Benefit Package, Tax Changes & Whats Available In Todays Market Place. Executive Benefit Profiles • Estate Planning • Government Bond Funds • Mutual Funds • Health Insurance Programs • HELPS • Tax-Deferred Investments • IRA’s, SEPs, & PENSIONS • Municipal Bonds Chartered Rnanclal Consultant Al Grier and Associates Registered Representative TheEQUmULE 6100 Fairview Road, Suite 200 • Charlotte, N.C. 28210 Equitable Life Assurance Co. New York, New York (704)556-9988 Equico Securities. New York, New York
The Charlotte Post (Charlotte, N.C.)
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June 24, 1993, edition 1
25
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