What makes a sad story comical?
There's more to this story, though. This gentleman's income? An allowance from his mother.
His home? His mother's, actually.
And did I mention that he's 61?
That's a disastrous retirement scenario
Certainly, moving back in with Mom and Dad can be a great way to save a few bucks. That's especially true if you're young or saddled with debt and stuck in a job that doesn't pay well.
If you find yourself as a young adult living with your folks, there are a few simple steps you can take to assure a rosy financial future:
If you follow that guidance, it'll be more or less certain that you won't need to rely on an allowance from your mother once you hit age 60. For instance, if our 61-year-old Sicilian had stuck $100 in each of these companies at age 25 back in 1971, check out what he'd have by now:
Value* of $100
Invested on 1/4/1971
Goodyear Tire & Rubber (NYSE: GT)
American Electric Power (NYSE: AEP)
Alcoa (NYSE: AA)
Chevron (NYSE: CVX)
Merck (NYSE: MRK)
Hewlett-Packard (NYSE: HPQ)
$700 turned into ...
That's not a bad haul from a one-time outlay of $700. Just imagine what his balances would be if he'd saved along the way and invested on a regular basis.
The reality is that most Americans nearing retirement (right around age 61) are in better shape than our Sicilian friend mooching off his mother. But don't get too excited -- the average American is still facing a pretty gruesome retirement fate.
That's why it's imperative that you kick your retirement plan into high gear. If you're young, living at home, and have many years ahead of you, be steadfast with your savings and take advantage of the powers of 401(k)s, IRAs, and compounding interest.
If you're well into your working years -- or even if you're in your early 60s -- the most important thing you can do is develop a game plan. Don't lament the late start or plan to just work for the rest of your life -- figure out what you have, what you need, and how to get there.
© 2007 Universal Press Syndicate.