Retirement. It is so far away, why even think about it? Why? Because you need to understand the concept behind the compounding of interest. Do you want to know how long it takes $100,000 to become $200,000? To find out how long it takes any amount of money to double at a given interest rate, divide the number 72 by that interest rate. For example, if you think you can earn 4% a year after tax, 72 ÷ 4 = 18 years to double. If you think you can earn 6% a year, 72 ÷ 6 = 12 years to double. The longer you wait to begin saving for retirement, the higher the rate of return you need, and therefore the higher the risk you have to take to reach your goal.

Perhaps you feel you have all the bells and whistles like an IRA, Roth IRA, Pension, Profit Sharing, or Keogh plan. Great, but not great enough. Most combinations of retirement plans will leave a $200,000 annual income person with a retirement income well under $80,000 pre-tax annually. A $500,000 annual income person with under $200,000. So how do we help to make retirement fun? We calculate what you need to set aside into a non-qualified supplemental retirement plan today so you will be able to enjoy tomorrow.

Retirement at 75% to 100% of pre-retirement income does not just happen. You have to make it happen. Proper choice of retirement funding and security plans can make it happen. It is not unusual today for people in their 60s to understand that they will have to continue working well into their 70s in order to maintain a reasonable lifestyle. If you want to work, that is fine. Work is healthy. But if you are being forced to work to maintain a normal lifestyle, it is not as much fun.

If you own your own business or if you are the decision maker in a public or large private company, you may already be in a position to implement the tools for a retirement that will be fun. If you work for a living, there are ways to provide a retirement income that would continue as long as you or your spouse are alive. The choice is yours. Work because you want to work, not because you have to. It can be fun!