| I saw a bumper sticker recently that said, | | | | hope not to lose our job to outsourcing or |
| RETIRE: "I was tired yesterday and I'm tired again | | | | downsizing and that our company will make good |
| today." That was the most literal definition I had | | | | on our pension plan for our golden years. What |
| ever seen! It struck me as profoundly interesting. | | | | other option is there? |
| Perhaps retirement itself, or the act of being tired, | | | | Not to mention, the idea of saving more is a |
| (following this definition), has reached the end of | | | | complete joke for most people. Given increasing |
| its useful life. | | | | regular credit use simply to make ends meet and |
| Retirement has been thought of in ways like | | | | the exponential rise in the cost of living for basics |
| cheese at the end of the tunnel. Most Americans | | | | like health insurance, transportation, energy, food |
| will work through the prime of their lives with one | | | | and housing costs, individuals and families are |
| eye looking forward to that magical moment | | | | getting squeezed: On one side, keeping up with |
| when they can leave it all behind to golf, fish and | | | | interest-bearing credit card and loan payments |
| garden. Even though they might suffer through | | | | and on the other, skyrocketing cost of living |
| jobs they hate, hours away from their families, | | | | expenses. What middle-class family can save |
| shouldering stress of professional responsibilities | | | | more in this economic climate? |
| they don't personally care about, they persevere | | | | The good news is that retirement's much needed |
| in hopes of 'retirement'. | | | | transformation, Reinspirement, is on the horizon. |
| The belief is that earnings will cease at some point | | | | REINSPIRE: I was inspired yesterday and I am |
| and a lifestyle recipe made of Social Security, | | | | inspired again today! |
| company pensions and personal savings will kick-in | | | | This new model is not just for one's later years: |
| to pick up the slack. | | | | It begins the moment you choose it. Though still |
| The only problem is, this nifty formula is coming | | | | under construction as a fully fleshed-out concept, |
| apart before our very eyes. | | | | one thing is certain: Passive earnings, whether |
| Social Security checks are typically too small for | | | | from pensions, savings, Social Security, stocks |
| anyone to depend on exclusively. Whereas 40% | | | | and bonds or some combination thereof, are not |
| of companies offered pension plans to their | | | | to be exclusively depended on but thought of as |
| employees in 1980, now only 21% do. According | | | | one component only of a later-years plan. Purely |
| to the Department of Commerce in October | | | | passive income (retirement) has become a |
| 2005, the overall personal saving rate (not | | | | habitual way of thinking about our later years. But |
| including pre-tax saving instruments such as a | | | | as everything in life changes, so must our thinking |
| 401k) was charted as 0.07%. Oops! | | | | and actions on this subject. Some level of active |
| Even so, most of us will continue to hold fast to | | | | cash-flow engagement (reinspirement) will likely be |
| the very same earning model that grows suspect | | | | called for in order to successfully maintain |
| with each passing day for its ability to insure | | | | long-term financial equilibrium. Time to get |
| later-years security. With fingers crossed, we | | | | reinspired! |