Article

Is Your Retirement-Ship Stuck in the Suez Canal?

Is Your Retirement Ship Stuck in the Suez Canal?

Do you aspire to retirement goals that are so big you feel stuck? You might be able to relate to one of the largest container ships in the world that was stuck in the Suez Canal, costing $15 million a day in lost revenues. Here’s a basic list of must-dos for 40 and 50 year old captains to help unstick your Retirement-Ship so that you might see smoother sailing.

August 18, 2021
Is Your Retirement Ship Stuck in the Suez Canal?
Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

On March 23rd, the massive, skyscraper-sized container ship named the Ever Given ran aground and got stuck in Egypt’s Suez Canal. It took about a week for more than a dozen tugboats, dredgers, engineers, salvage teams, and a full moon that brought an unusually high tide to free the behemoth.

While it’s still not clear exactly how it got stuck in the first place, experts theorize that the Ever Given lost control amidst strong winds and sandstorms. But the Ever Given’s management firm did rule out any mechanical or engine failure. Now some are suggesting that “technical or human errors” may have caused the ship to run aground, costing Egypt about $15 million a day in lost revenues.

The Ever Given, one of the largest container ships in the world, is 400 meters long (that’s over 1,300 feet), weighs 200,000 tonnes (a tonne is heavier than a ton by the way) and has the ability to carry over 20,000 shipping containers (it was carrying 18,300). It’s massive.

Do your aspirational retirement goals feel like the massive Ever Given? And are you a 40 or 50 year old captain that is now stuck? Here is a basic list of must-dos to help unstick your retirement-ship so that you might see smoother sailing.

Unstick Your Thinking

People in their 40s and 50s should really look at maximizing everything they can do to prepare for retirement. This is especially true as our life expectancy grows longer, thanks to improvements in medical science. You should aim to maintain a reasonable retirement lifestyle for two or three decades after you “retire.” And that takes diligent saving and careful planning.

Maximize Your Retirement Contributions

Maximizing your contributions to retirement accounts, such as 401(k)s, is the first step, The annual contribution limit is $19,500. If you reach 50, there is an additional catch-up contribution of $6,500.

If the choice is between saving for retirement and saving for college, give retirement the first priority. There are loans for education, but not for retirement.

Understand Your Spending

Understanding your spending is key to determine when you can retire. Any kind of retirement plan is not going to work if you don’t know how much you spend.

By evaluating your spending, you know how much you need and how much extra money you may have to fund other financial goals in retirement.

Learn About Social Security

Knowing the Social Security rules makes a huge difference, because the age you start claiming it determines your benefit income for the rest of your life.

If you begin collecting Social Security before full retirement age, you permanently reduce your monthly benefit. If you don’t know the rules, you can easily be passing up thousands of dollars of benefits.

Find a Financial Advisor

The key to successful financial planning lies in following wise investment strategies, custom tailored to your personal aspirations. And while your financial plan should be tied to your long–term goals, short–term events (like high winds and sandstorms) need to be addressed too.

Your financial advisor can help you keep your emotions out of your investing decisions and keep you from running your retirement-ship aground.

That way you can rest comfortably at night knowing that your money is working toward your goals. Not toward hiring tugboats and dredges to dig you out.

Other content you may like

  • GRATs: A Planning Tool for Business Succession

    GRATs: A Planning Tool for Business Succession

    September 27, 2022
    Have you heard about the ways to reduce your family’s tax burden while keeping your business intact? With this planning tool you can put all or part of your company’s stock into an irrevocable trust that pays you, the business owner, a fixed income for a specified number of years, being especially useful if a business or estate assets will appreciate in value.
    Read this Article
  • It's Time in the Market, Not Market Timing

    2020: A Wild Ride

    January 9, 2021
    This new year summary recalls historic returns in the U.S. stock market in the past two years. Plus important stats on risk, volatility, assets and diversity, including the historic divergence between equity mutual fund and ETF flows.
    Read this Article
  • The Importance of Open Enrollment this Year

    The Importance of Open Enrollment this Year

    August 16, 2022
    Given the rising costs of healthcare and the impact of the pandemic on businesses, many experts are expecting benefits to go up. Whether you are in government employment or not, now is the perfect time to evaluate your own unique needs and find options that might save you money. Here’s help for reviewing your benefit choices to maximize what your employer offers.
    Read this Article
  • Podcast Highlight - What Happened to the Chinese Economy

    March 14, 2024
    The Strong Valley Team talk about the surprising and unexpected impact of the population in China on their economy, briefly discussing the factors that historically have caused an economy to be strong and thriving.
    Read this Article
  • The link you have selected is located on another server. The linked site contains information that has been created, published, maintained, or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products, or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein. Visitors to any linked websites should not use or rely on the information contained therein until they have consulted with an independent financial professional. Please click “Continue to Link” to leave this website and proceed to the selected site.
    phone-handset