The Cat Column – Working Longer Makes a BIG Impact

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Published by Taylor Financial Group (And Oliver the Cat)

Dear Humans,

So I know what you’re thinking, “Oliver, you are a cat. You don’t work at all. Who are you to tell us that we should consider working longer?” Well, I am here to tell you that I am not just a cat, I am a hardworking individual. In fact, I probably work more than you do, because my work never ends. At the Taylor Financial Group office, I work full time as a Quality Control Specialist, inspecting, testing, and sampling materials (i.e. chairs, couches, mattresses, laps, etc.), for defects and any deviations from specifications (every object must be tested for its strength by gravity).

Then, after the traditional work day is over, I go to the Taylor family home and do my best work as an emotional support animal, bringing joy to the Taylor family. Essentially, I am a very hard worker and you should believe me when I tell you that working longer can make a hugely positive impact on your savings.

Many humans (and cats) do not truly realize the impact that working longer can have on their savings. In fact, the National Bureau of Economic Research found that working a few years longer can be more impactful on improving retirement income security for older workers than boosting 401(k) contributions during the last decade of work.

Investment News concurs, stating that a 36-year-old who increased her 401(k) contributions from 6% to 7% of her pay (assuming a 3% employer match and 5% annual return) would receive approximately four times more benefits from her increased contributions and earnings over 30 years than a 56 year old who increased her savings by a similar percentage over 10 years. In comparison, a 56-year-old worker who decides to work an additional month at the end of her career could receive the same increase in retirement income as she could by boosting her retirement savings by one percentage point over 10 years.

 

In conclusion, if you are close to retirement, it is important to know the major benefits that can be gained through working longer. If you have questions about your retirement plan and when it would be best for you to retire, feel free to contact the Taylor Financial Group office for advice.

 

Till next time,

Oliver Taylor

 

Disclaimer: This article contains forward-looking statements that depend upon or refer to future events or conditions. These statements contain factors that may cause the actual results to differ materially from those expressed or implied. There are no guarantees any investment or strategy will meet its intended objective.

 

 

Sources: “Working Longer is the best way to boost retirement income.”

https://www.investmentnews.com/article/20180725/BLOG05/180729954/working-longer-is-best-way-to-boost-retirement-income

 

 

 

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Charitable Giving Strategies in a High-Income Year

Tom Fridrich, JD, CLUⓇ, ChFCⓇ, Senior Wealth Planner  The end of the year offers an ideal opportunity to look both forward and back — reflecting on recent achievements, while setting goals for the upcoming months. For many of my clients, it’s also a time to review their finances and i …

Let’s Talk About Midterm Elections and Your Investments

This week was midterm elections and we’ve had many questions about what it all could mean, which we’ll tackle in today’s blog. We consider it a great honor to vote, and while we may not know the final results of the election for days (or even months), what we do know is the election will …

Traditional IRA & Roth Conversion

If you have a Traditional IRA, you may benefit from doing a Roth conversion this year (and if you already performed a conversion this year, you still have time to do an additional conversion before year end). We typically favor Roth IRAs (over Traditional IRA balances) as Roth IRAs grow tax …

3 Nontraditional Ways to Give That Still Qualify for a Tax Deduction

Kevin Oleszewski, Senior Wealth Planner ‘Tis the season to give. In fact, 37% of charitable giving occurs during the last quarter of the year — 20% of it in December alone, according to a survey conducted by the Blackbaud Institute. And while the holidays are traditionally a time to reflect …
1 2 3 219 220 221

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation