Financial Realities Meet Dreamy Expectations

By Mary Pat Mansfield

As many of us toil each day through our workaday lives, we strive to maintain comfort of our families and security for our later years in life. Yes, we are all ultimately saving for retirement and dream of the golden years. Many of us have received reports from the Social Security Administration about how much Social Security we can expect once we retire at age 65 or 70 and soon realize that our expectations may have to be readjusted.

So what does it mean to be fiscally fit past 50? It's really a matter of figuring out what personal expectations you have for retirement. Do you want to own a house on a golf course or are you content to stay in the home you've always lived in? Do you have dreams that are realistically achievable? Are there things that you simply must try before you aren't able? Have you always dreamt of traveling the world once you get the time?

We all understand the notion of setting financial goals for our later years in life which usually equates to having a certain amount of income each month on which to live. But, it's important to make sure that the things you want to do match with the amount of money you've saved. Otherwise, you could be facing a deep disappointment that could lead to depression in later years.

Here's a good way to assess if your finances match your expectations:

List all the major daily expenses in your life today that you will continue to incur when you reach retirement. Examples include daily expenses like groceries, medical bills, housing, automobile expenses and taxes.

List all the things you currently do for "fun" that cost of money. Traveling, entertaining, education, fitness/exercise are good examples. Assess whether these are things you may want to continue doing as you reach your retirement years.

Finally, assess all the things that you've always dreamed of doing in retirement. Have an open discussion about what your expectations are with your family and/or spouse so you can begin planning toward those goals. There's a possibility that you might have to let go of some of your current "fun" to make your retirement dreams become a reality.

The bottom line is that if we continue to evaluate what we want and set financial goals that will help us achieve our dreams, then we've achieved financial fitness. In the long run, it's not about having the biggest bank account, it's about leading a life in our later years that is fulfilling and gratifying to us as people.