When Children Leave Home, Do Parents Save More for Retirement?

This is in interesting article about a scary subject.  I can’t tell you how many times parents have promised me that they will increases savings rates when the kids leave home.
Steve

When Children Leave Home, Do Parents Save More for Retirement?

Researchers at the Center for Retirement Research at Boston College (CRR) found that parents do not meaningfully increase their rate of saving when children leave home. Instead, they find new places to spend the money they had been spending to take care of their children. The analysis showed that, “Households save only slightly more in 401(k)s when kids leave, far below what is likely needed for a secure retirement.”

Missed Opportunity

A CRR Brief summarized the paper’s findings in this way: “Spending the extra money means fewer resources at retirement and a higher standard of living to target; saving it means more resources and a lower target.

”Such evidence offers investors another compelling reason to take advantage of opportunities to save more for retirement. The authors shared the following observation in the paper’s conclusion:

“If households stand pat and maintain their total consumption when the kids leave, they will aim to keep that consumption level in retirement and will have less savings with which to do it. If, instead, they increase saving, they will have more retirement assets and a lower level of consumption to maintain.”

Source: Forum Financial Management, LP

A Musician Must Make Music …

“A musician must make music, an artist must paint, a poet must write, if he is to be ultimately at peace with himself. What a man can be, he must be”

― Abraham H. Maslow

Abraham Maslow wrote about self-actualization – the ability to transcend levels of physiological, psychological and social needs, to obtain fulfillment of personal needs in terms of life’s meaning.

According to Maslow, it is all about meaning – and purpose in life.  Meaning is purpose – and that is why we are here.

Every step you take, every breath you breathe, should be focused on living your purpose in life.  Every action, including financial actions should be focused on your purpose.

Steve

Clayton Christensen Wants to Transform Capitalism | WIRED

Related Opinion Beyond the Disruption Buzz: Clayton Christensen on MOOCs Sixteen years ago a book by Clayton Christensen changed business thinking forever. The Innovator’s Dilemma looked at industries ranging from disk drives to steel to mechanical excavators and exposed a surprising phenomenon: When big companies fail, it’s often not because they do something wrong but…

Source: Clayton Christensen Wants to Transform Capitalism | WIRED

Something is Something

Will you be remembered 200 years from now?

Do you want to be?

I do.

I want to be remembered for having made a difference in the lives of people I worked with and the people I loved.  I want to be remembered 200 years from now as a person who saw the importance of thinking about the future and did something about it – even if that something was small and fairly insignificant.

Something is something.

I have been inspired to doing better things and being a better person by many of my clients- who feel that what they have done and who they have touched is not a big deal – when, in fact, it is.   They have changed people’s lives – including mine.

Every act of kindness changes the world – for the better.  I want to have made a positive difference in people’s lives.

Having that as a goal increase the likelihood significantly of that actually happening.

Steve

When you do what you love …..

“When you do what you love, the seemingly impossible becomes simply challenging, the laborious becomes purposeful resistance, the difficult loses its edge and is trampled by your progress.”
― Steve Maraboli, Life, the Truth, and Being Free

You often hear that you should “do what you love”.  And I agree – but it’s not because that’s how you make the money – but because that’s how you align your actions with your purpose.  I find that doing what you love is ALWAYS aligned with purpose and is one of the key ways to discover what you purpose in life is.

What a wonderful way to live life – pursuing your purpose – until the day you die.
Steve