Why a 90-year life needs a plan.

Up until now, it hasn’t been normal for humans to live to 90 years of age.

It wasn’t that long ago that 50 was the average life expectancy. So, when you think about it you are educated for the first 25 years of your life and you will want to retire when you are about 60. That means you are going to work for only a third of your life. 

In those years of work, with earned income, you are going to have to buy a house, educate your children and plan for your retirement. Hopefully, you will not be doing it alone. In really basic terms to buy the house and educate 2 children is going to cost about $1.5mill including interest payments. That’s $50,000 a year for 30 years.

Now let’s say you get a jump of your peers and start saving when you are 20 years of age. That gives you 40 years and the cost comes down to $37,500. Factor in that you save for the first 10 years and earn investment income, unearned income, on your savings and the figure can come back to $30,000 per year.

And that’s why you need a plan. $50,000 per year for 30 years is enough pressure to ruin a marriage, get you burnt out and drive anybody to drink.