Simply Think About Your Future Self
People who feel more connected to their future self may be more likely to save for retirement, according to recent research. Some 193 Stanford University staff members received two different messages about their retirement accounts: one encouraging them to think of their own "long-term well being" and the other telling them to think about a "future self" who is completely dependent on how much they save. A subset of participants who reported feeling closeness to their future, retirement-age selves responded to the "future self" message by saving 0.85 percentage points more of their salary annually. For a 30-year-old man earning $45,485 per year who increases his saving rate from 5 percent to 5.85 percent, this increase is equivalent to an additional $68,797 in savings upon retirement at age 65.
Write a letter to your future self. That will at least help you start thinking about your future self as a realistic person who is going to be the recipient of the decisions that you make today with regard to finances.
Call me for a FREE analysis and evaluation of your Retirement alternatives,
Jesse Alvarado
(562)822-5565
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