Skip to main content

Urban legends, urban myths, and the latest that’s on everyone’s lips–fake news. Whatever you call it, in our age of information, claims of spurious repute can go viral in minutes.  Anyone with a PC can start a blog and offer up opinions on just about any subject, whether he or she is an authority or not. Sources? Who needs sources. OK, there’s a bit of sarcasm in that last comment, but I think you know where I’m going. When it comes to easy retirement, there are plenty of misleading thoughts, opinions and fake news floating around out there. This month, I’d like to clear up some misconceptions that surround the retirement years. With that in mind, let’s jump in.

#1 I’ll never see a penny of the money I put into Social Security. One of the most common retirement mythsIf I had a nickel every time I heard someone utter that phrase. Sadly, if a 40-something says he is confident he will receive monthly checks, he sets himself up for ridicule among his contemporaries. I wouldn’t disagree with the hypothesis that young people getting started in the workforce will receive a low return on contributions into Social Security, but that’s a completely different argument.

Back to the matter at hand, Social Security is not on the verge of bankruptcy, and I fully believe even those who are many years from retiring easy will be collecting monthly benefits when it’s their turn. Let me explain.  According to the 2017 annual report from the Social Security and Medicare Board of Trustees, Social Security “has collected roughly $19.9 trillion and paid out $17.1 trillion,” in its storied 82-year history, “leaving asset reserves of more than $2.8 trillion at the end of 2016 in its two trust funds.”  As an ever-larger number of baby boomers continue to retire and collect benefits, the trustees expect the trust funds to be depleted by 2034.  Thereafter, expected-tax-income receipts are projected to be sufficient to pay about three-quarters of scheduled benefits. Put another way, recipients of Social Security would receive about a 25% cut in benefits, if no changes are made to the current structure.

Of course, these are simply projections and much will depend on economic growth, job creation, and wages. Yet, it’s a far cry from the retirement myth “I won’t see a penny of Social Security.” I suspect that politicians will eventually settle on some type of compromise that will extend the life of the current system.  That said, I recognize that timing and strategies that can be implemented for Social Security may be complex.  If you have questions regarding retiring easy, please  give me a call or shoot me an email.  I would be happy to discuss your options with you.

#2 The stock market is too risky. There’s no question about it, the bear markets that followed the bubble and the 2008 financial crisis were unprecedented, in that we saw two steep declines in less than 10 years. Made fearful by what they see as too much risk, millennials have shied away from stocks, according to a Bankrate survey.  What seems like a complete disconnect:  Millennials seem to be far more interested in Bitcoin!  The word speculative doesn’t even begin to describe Bitcoin.  But let me get back on topic.

There has always been a degree of risk in stocks, even with a fully diversified portfolio.  Yet, a well-diversified portfolio is akin to a stake in the U.S. and global economy.  Moreover, the U.S. and global economy has been expanding for many decades.  It may not be larger next year, but history tells us it will be bigger in 10 or 20 years.  When it comes to investing in stocks, I typically experience some resistance from folks who haven’t seriously entertained the idea before. I listen to their concerns, and answer with an array of factual data that’s not designed to win an argument, but simply to educate.  When you have all the facts, then you can make an educated decision about what’s best for you and retiring easy.

#3 Retirement Myth – “Medicare will handle all my health care needs in retirement.” If only Medicare did cover everything.  But then, the cost to finance it would be much higher.  Medicare doesn’t cover the full cost of skilled nursing or rehabilitative care, according to AARP.  Yes, the first 20 days of a stay in a nursing home is covered, but you’ll pay over $160 per day for days 21 through 100, and Medicare doesn’t cover stays past 100 days.  You may be paying out of pocket for personal care assistance, too. The same holds true for miscellaneous hospital costs, routine eye exams, hearing, foot and dental care.

#4 Why save today when you can start tomorrow—there’s plenty of time to retire easy. This section is designed for millennials and those who are just beginning their journey in the workforce. There’s no better day to begin saving than today!  I can’t stress this enough.

Let me give you a simple but telling example.

Susan invests $5,000 annually between the age of 25 and 35 and earns 7% annually. She puts away a total of $50,000.

Bill invests $5,000 annually between the age of 35 and 65 and earns 7% annually. He saves a total of $150,000.

When Susan reaches 65, she will have amassed $602,070, while Bill will have $540,741.

Source: JP Morgan Asset Management

Lesson learned–the sooner you begin, the better off you will be as you approach retirement.  Take full advantage of your company’s retirement program.  If your company doesn’t have a savings plan, there are many simple ways that you can get started.  Feel free to reach out to me and I can assist you.

#5 Retirement is easy. One of America’s biggest retirement myths. Many look forward to the day when they will no longer prepare for Monday mornings at the office.  For those who face the work challenges that crop up daily, retirement may seem like a welcome oasis in the distance.  But that oasis sometimes turns out to be a mirage.  Often, the transition from decades of working to retirement isn’t so simple.   For a better retirement, set goals, and not simply financial ones.  Can you transition to part-time in your job?  Consider part-time employment or consulting.  It will ease the transition, keep you busy, and extend your savings.

Volunteer with your local church or community organizations.  Are you familiar with Look for groups with similar interests.  You’ll not only derive an enormous amount of satisfaction from helping others during your “easy retirement”, but you’ll meet like-minded folks and make new friends.  Try something new.  My mom has taken up piano and really enjoys it.  Please, keep up any exercise routines—and it’s never too late to start a new one.  Check with your doctor, who will be happy to prescribe a fitness plan that’s suited to you.  Have you ever considered taking a class? How about writing a book? Expanding your knowledge or sharing your ideas can be quite fulfilling.  Though well into his 70s and still happily working, one individual I know is writing a book to his kids.  Now there’s a legacy!  The most important thing you can do to make retirement enjoyable and easy is to stay active and keep your mind and body sharp.

I hope you’ve found this review to be educational and helpful. Let me emphasize again that it is my job to assist you! If you have any questions or would like to discuss any matters regarding retirement myths or financial strategies, please feel free to give me or any of my team members a call.

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at

Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.

Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Join our newsletter

"*" indicates required fields

This field is for validation purposes and should be left unchanged.