Chapter 13: Why Most People Die Poor
1. Many
educated, middle-class people feel themselves falling behind even though they
work harder and harder. Often, they are overwhelmed when they found that their
working years were over and their retirement income wasn’t enough.
2. Why
most people due poor:
a. Lack
of planning/ no planning at all: If I summarize all I learned from my
experiences with the senior friends, it would be: health and finances need to
be cared for when we’re young, not when we’re old. Too many of the senior
adults had not planned adequately for their old age.
b. Hopeful/
wishful thinking: All too many of us live on the hope that tomorrow will be
better.
c. Lack
of understandings or wrong estimates on resources or expenses required after
the retirement lives: When we are young, it’s not always obvious to us that the
quality of our lives in our retirement years will depend on how we prepare for
it in our youth.
d. Misunderstanding
on the concept of “investment”: A lot of people mistakenly think that buying a
home is an investment. If your home is your largest “investment”, you should
consider reading some books on investing soon.
e. Fail
to think ahead: If you are between the ages of 35 and 55, and living
month-to-month with no investments, your senior adult years will most likely be
painful ones.
f. Trying
to get-rich-quick: The drive for immediate satisfaction of all our wants and
needs has led to a very destructive “get-rich-quick” way of thinking.
g. The
failure of educations system: For example, we were taught in school to look for
a secure job with good benefits. We should be taught instead that there is no
such thing as a secure job.
3. The
reality is that unless we are succeeding in teaching virtually every citizen
the rudiments of how to achieve economic well-being in our society we are
failing ourselves and our children.
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