Mature Life Features

By Cecil Scaglione

Mature Life Features

Instead of saving for your retirement,  go shopping — for an income plan, that is.

Saving has such an onerous connotation to many of us. We think  it requires discipline and deprives us of the immediate use of all the money we work so hard for. The notion of buying your retirement might ease the pain of the process,  suggests the Financial Planning Association.

You’re going to shop a  401(k), individual retirement account, tax-deferred fixed annuity or some other plan that best for you. The money you put into that investment will be used for delayed purchases of groceries, vacations, medical treatment, family cars, insurance, clothing — everything you shop for and buy now. “Think of it as buying something on the lay-away plan,” said FPA member and San Diego certified financial planner Andrew Castiglione.

Act like your taking a trip to the Retirement Planning Mall. When you head to the megastores looking for a television set or refrigerator or winter jacket, you have an idea of what you want or need. Your study the colors and qualities of several models on your shopping trip, narrow down your choices, and finally make your purchase. Shop the same way for your retirement.

Do you want one with plenty of travel time or lots of hobbies? Are visits to your grandchildren high on the list of desired features? Are you thinking of moving or working part time? What medical-treatment options do you have in mind? It’s just like buying a TV set, in a way. You may not be able to afford the latest 60-inch flat-screen entertainment center and have to settle for a 32-inch model.

So you may not be able to afford a dream retirement, but you can avoid facing a nightmare if you shop as early as possible. Like, right now if you haven’t done it yet.

A retirement lifestyle that reflects your working-life standard of living will cost about 75 percent of the income you earn during your career, according to the FPA. Social Security and your company pension plan will cover part of that, but that’s not likely to cover it all. To get the best bang for your buck, buy your retirement plan as early as possible.

Mature Life Features, Copyright 2003