Are you guilty of magical thinking?

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A Bloomberg article, “Retirement Roadblock: The Dangers of Magical Thinking,” suggests that fewer people than who think they will work will work past 65 actually do. The average age of retirement is 59. The danger, according to the article, is that you’ll base your savings rate for retirement on the later date and may not have enough funds when you do retire. Stuart Ritter, a financial planner at T. Rowe Price, advises you save at lest 15 percent of your salary, just in case your plans to work longer don’t work ouMagict.

For various reasons, you could work a shorter period of time. You may lose your job due to cutbacks, layoffs or other company actions. You could have health issues. Or you could decide “I gotta get out of here.” RVing could be the way to manage on less money. You can often get a site as part of your compensation or in return for a volunteer assignment, thus reducing your expenses. You can even find a paying job. It most likely will not replace all of your income, but it could be a nice supplement, especially if your expenses are now less than what they were as the owner or renter of a house or apartment.

For more information on ways to live more cheaply in an RV see Retire to an RV: The Roadmap to Affordable Retirement. If you think you will work and volunteer as you travel, and want more information, see Support Your RV Lifestyle! An Insider’s Guide to Working on the Road. It may be magical thinking to set aside small amounts and think that will be enough for retirement. It could also be magical to hit the road in an RV! Jaimie Hall Bruzenak

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May 22, 2013
Categories : RV retirement
Technorati Tags: retirement rv rv retirement rving volunteering working on the road

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