Percentages of Savers in USA
If you're a tennis teacher and somehow think you'll be doing the same thing on the court at age 60 as you do at 30 or 40 you have a rude awakening in the future. Very few pros I know reach even the age of 50 without starting complaints about physical pain and weariness. If you're been teaching 20-30 hours a week for decades it's inevitable that you'll have to slow down.
With that in mind you should plan to put aside some savings and investments. I'm not an investment advisor but read regularly on the subject. Also, I know others that have successfully planned for the future. What each has in common is a long term commitment to retirement saving and investing in an assortment of categories. The term always used by investments advisors is diversification and you don't have to be an expert in the field to know that not putting everything into one category is a prudent approach.
Here is the approach of a friend I know who stepped aside from work at age 60 with enough money to likely carry him until the end without worries. His job was not high paying but it was reliable as is he. He never stopped investing and didn't waste what he did earn on extravagances.
Percentage of Retirement Net Worth - excluding paid off home
Savings - cash 20%
IRA -Mutual Fund: Equity Income - dividend producing large cap USA stocks - 70%
Precious Metals 10%
Income after retirement: Social Security
Speaking to him regularly I've learned that he has taken Social Security at age 62 so lived on savings for the first two years of his retirement. Now he is able to leave his savings and investments alone and for the time being live exclusively on social security. Meanwhile his income producing IRA is left to grow tax deferred until he needs it.
Saving Guidelines for the young
If you're new to teaching tennis then I suggest you get started now in your retirement investing.
Benefits of Retirement
Of course cutting stress will help you live longer and working in a job that wears you out and prevents you from exercising and enjoying life seems like a poor trade.
An overwhelming Retirement Environment
They're saying you won't be able to retire until 70 if you're now in your 20s or 30s. How does that sound? I can tell you that it is a bad option and not one you really want to face unless you have to do so. The reason is that you can't guarantee that you'll be healthy and that you will still be employable at that age for a variety of reasons.
Two ways to Win:
Increase your retirement savings
Cut your living expenses in retirement
Don't put off Saving
