Colorado Springs bankruptcy attorneys know that in order to avoid being burdened by debt in old age, retirement savings are crucial.
However, life has a way of throwing in a few surprises, and in those cases, a Colorado Springs bankruptcy can give you the freedom to enjoy your golden years free from the stress and worry of cumbersome debt.
A lot of financial analysts say that it’s wise to try to save for your retirement as if you would live to be 100 years-old. Of course, we know that as of right now, the average life expectancy is quite a few years less than that. So why bother saving that much?
Because the truth of the matter is, life is unpredictable. You already know this if you are considering filing for a Colorado Springs bankruptcy.
A story is told by a Stanford management science professor in which a statistician drowned in a river that had an average depth of just three feet. Of course, while the stream was very shallow close to the shore, it was 12 feet deep toward the middle.
The whole concept is that if you use the average life span to figure out how much money you’re going to need to save for retirement, you may ultimately find yourself drowning in debt in your old age.
So what we know is that for the average 65-year-old man, assuming he’s healthy, he’ll live for probably another two decades. For a woman of the same age and situation, it’s about another 22 years. What’s important to note, however, is that a lot of people live longer than that nowadays.
In fact, a 65-year-old woman has a 40 percent chance of living until she’s 90-years-old.
So if you’re 65 years-old and you have about $500,000 saved up – enough to last for the next two years – there’s about a 10 percent chance that you may use up all your money by the time you’re 85. And then what will you do?
Of course, there’s no one-size-fits-all amount to save. But if you’re in a situation where you may be in middle age and be so burdened by debts that you’ve been unable to put anything aside, it may be time to consider a Colorado Springs bankruptcy.
Discussing your situation with an experienced attorney can help you explore your options.