The idea of planning for retirement is easy - you just tuck some money away into a savings account every week or month and when you retire you'll be all set, right? If only it were that easy! It's true that planning for retirement does involve saving up over as long a period as possible, but that isn't all there is to it. Here are other factors that you need to consider if you want to have the best retirement plan possible.
As human beings, we have the ability to do research, diversify our portfolios, and think things through, so why is it that people are underperforming the stock market by so much? The answer is emotional investment behavior. Individual investors are simply too emotional to outperform the stock market.
The price of a good education is more expensive than ever. Tuition costs for college are sky high, creating a heavy burden for students who aren't lucky enough to receive a full scholarship. Despite the high cost, a good education is still the best way to put a young person on the path towards a successfully future, making an expensive college education a necessary evil.
Financial stress hurts everyone. When employees aren't happy with their compensation and standard of living, this severely impacts a company's performance and productivity. If people are making less money, the economy starts to struggle as consumer spending is decreased. Perhaps above all else, the stress of financial worry will drastically hurt your mental and physical health.
There are so many people who want to make a million dollars at some point in their lives. After all, why wouldn't you want to make that much money? There are a number of ways that you can do this, but for most of us, we don't naturally have careers that will earn us a guaranteed million dollars from our salaries.