San Francisco, CA, January 23, 2008 --(PR.com
)-- Falling house prices, a sinking stock market, and an economy in danger of entering into a recession, all may have a negative affect on the net worth of the nearly 80 million American baby boomers approaching retirement. If a declining economy were not enough of a worry for baby boomers, what impact will global warming have on their retirements?
One company believes that it has found a solution that might not only save people their retirements, but one that could also help save the planet – a green retirement. "Switching from a consumption lifestyle to a conservation lifestyle, both before and during retirement, could save people hundreds of thousands of dollars, allow them to retire years earlier, and help the environment," according to Ramsay Mameesh, founder of iPlan Retirement, a new retirement planning company based in San Francisco, California.
Traditional retirement planning focuses on a person's savings, increasing their savings through investments, in order to pay for retirement. The green approach to retirement planning focuses instead on the individual's spending. "Retirement is a function of both saving and spending," says Mr. Mameesh. "How much you spend in retirement determines how much savings you need to pay for your retirement. By decreasing your consumption, in other words spending less, you effectively decrease the amount of savings you need for retirement. Going green, for many Americans, may be the answer to saving their retirement. And while saving their retirements, by reducing their consumption, they are also helping to save the planet."
Mr. Mameesh also argues, that the current method of retirement planning is neither financially accurate, nor environmentally sustainable. "The retirement industry calculates the amount of savings you will need for retirement by assuming you will consume between 70% to 80% of your current earnings annually in retirement. First, it is a guess. And secondly, it forces you to acquire a tremendous amount of wealth, in order to sustain a lifestyle that is unsustainable. It is retirement based on consumption. And in our current economic and environmental situation, it no longer makes sense, a different approach is needed."
The company believes that using a person's spending as the basis for calculating retirements, instead of their savings or earnings, produces more accurate retirement plans. "There is no guessing. If you spend X dollars in retirement then you will need Y dollars in savings to pay for your retirement." The iPlan Retirement website calculates how eliminating your car could reduce by $180,000, the amount you need to save for retirement, and allow you to retire 7 years earlier. And in another example, the company illustrates how an additional $45,000 in savings would be required, in order to keep a $150 a month storage unit in retirement.
"The environment and economy are in crisis; new ways of doing old things are going to be required to avert a catastrophe," claims, Mr. Mameesh. "A green retirement is a new approach to retirement planning, one that is financially beneficial, and could help save our planet."
A fee-only retirement planning company, iPlan Retirement offers retirement planning services to individuals nationwide. The company does not sell investments, manage money, or charge commissions. The company is located in San Francisco, California.