Why Are People Dying with So Much Money?
The Federal Reserve came out with a study recently that pointed out a mind-blowing statistic. On average, retirees are dying with nearly twice as much money in savings as they had on the day they retired.
In this week’s article, we are going to examine common thought patterns which are leading to this rather strange phenomenon.
Bob Lewis’s thoughts: “Sure, I’ve saved up $500,000 for retirement. But I better not spend any of that money unless I absolutely HAVE TO. You just never know what might happen.”
Andy Babock’s thoughts: “What happens if I have to go to a nursing home?! What happens if I need a major surgery?! If I spend any of this money, I might end up living in a van down by the river, eating from garbage cans, playing cards with hobos.”
Betsy Nehas’s thoughts, “My parents always taught me: “Never stop saving. Never spoil yourself. Be financially conservative. Never spend any money unless you absolutely HAVE TO. If you start spending too much money, you may end up living on the streets.”
Jackie Dougherty’s thoughts: “I’ve been working with a financial planner for years and he has never even mentioned actually spending some of this money. All he talks about is bonds and stocks and alpha and beta and Sharpe ratios. Honestly, I don’t understand much of what he says, but he is the professional.”
Karen Schwartzbaugh’s thoughts: “My neighbor just told me about his parents who are running out of money! They lived longer than they thought they would. They just up and ran out of money. I am so scared that might happen to me. My other friend knows someone who had to go into a nursing home and the nurses keep stealing her dentures and other possessions. Oh, my, this is so frightening. “
Whitney Claxton’s thoughts: “I’m working with a lady at the bank. She’s handling my portfolio of investments. I saw on the internet yesterday that some Wall St. guy is predicting the stock market is going to crash by 80%. I hate this! Why does life have to be so scary! I guess I’ll have to cancel that cruise. I can’t be running around spending all this money when the economy is about to collapse.”
Bob Pierson’s thoughts: “Sure, I wish I had spent more money and checked off more boxes from my bucket list. But I just turned 75. I don’t have the energy any more. I guess I don’t need to worry about running out of money, but at this point in my life, there isn’t all that much I even want to spend the money on.”
Maria Tran’s thoughts: “Sure, I wish we got to do more fun stuff, but you can’t be irresponsible. I have spent my entire life building up responsible spending habits. I’m certainly not changing now. I’m going to continue to cut coupons, eat the early bird specials, and buy generic cereal. I don’t care if I have the money to spend. It just doesn’t feel right to do so.”
Dave’s Conclusion: If any of these people sound a little bit like you, you may have a few misconceptions in your head that could sabotage your retired years. You don’t know what you don’t know. Don’t live scared. Don’t die rich. Don’t let someone else spend your money!
To learn how to find the perfect balance between spending too much and spending too little, please click here.
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