By David Burge
El Paso Times, August 11, 2008
Page 6C
Don’t get discouraged about saving for retirement, but make sure you are planning for your
golden years, said an El Pasoan who retired at age 48 and recently wrote a book on how to
save and plan for your golden years. Retiring often costs a lot less than many people think,
said Jonathan Edelfelt, a former corporate lawyer who now lives in the Upper Valley and
recently wrote the book, “Who Said You Need Millions? Retirement Strategies for the Rest of
Us.” Edelfelt said you don’t have to save $1 million to retire.
What you do need to save depends on your anticipated needs and lifestyle during retirement,
he added. While saving is an important prelude to retirement, so is cutting back on your
expenses and living below your means, Edelfelt said. Edelfelt, now 52, and his wife, Cathy, split
their time between El Paso and San Miguel de Allende, Mexico. They don’t own a house in
Mexico. Instead, they drive a recreational vehicle to the Mexican city that they call their winter
home and then live in the RV.
“There’s a lot of overstatement about how much money you need to retire,” Edelfelt said. That
can make people get depressed and give up on saving for retirement, he added. “You can
retire on less than you think,” said Edelfelt, who started his career as a lawyer in El Paso but
spent most of his career in Houston working for several energy companies. “Obviously, if you
retire on a modest income, you’ll need to live a modest lifestyle. If you’re living on $30,000 a
year, you won’t be able to live in New York City.”
Westsider César Ayala, 24, just started a full-time job after graduating from the University of
Texas at El Paso in May. He signed up for his employer’s retirement plan, saying it’s “extremely
important” to save for retirement and to live within a budget. “I want to have a good life in my
older years and sit back and not worry about money,” he said. “It’s also important to live within
what you make and save, not just for retirement, but also have a separate savings account.”
Edelfelt said the lifestyle many Americans have is based on charging up their credit cards. “This
is unsustainable; you can’t retire on credit,” Edelfelt said. It’s important to take a look at your
budget, find ways to trim costs and live below your means, he said. “My wife and I have one car,
for instance,” he said. Spending $8 to $10 on gourmet coffee every workday can add up too, he
said. “A lot of people don’t even realize they’re spending $1,500 on cappuccinos a year,” he
said. “If you’re living the high life and being someone you’re not, you’re not getting ahead. You’
re falling behind.” Of course, you still need to save and invest for retirement, Edelfelt said. “The
more you save, obviously the better,” he said. “If you’re not saving, start saving. If you are
saving, save more.”
Jerry Love, an Abilene certified public accountant and former chairman of the Texas Society of
CPAs, said the book has an interesting concept and he particularly likes the premise that you
can live on less than you think you can. “Most (U.S.) families spend $1.22 for every dollar they
earn,” Love said. “If you’re in your 20s or 30s, you have plenty of time to mend your ways and
save for retirement.” If you are in your late 40s through your early 60s, you need to take a look
at your lifestyle and find ways to trim your expenses, Love said. The goal is not to spend
“everything you make and more,” Love said. Learn to live on less money and save the extra to
have a bigger nest egg for retirement, he said.
Greg McBride, senior financial analyst with Bankrate.com, said it’s just as important to trim
expenses and live within you means as it is to save. “Although much attention is given to
accumulating sufficient assets for retirement, it is equally important to determine what kind of
lifestyle you want in retirement,” McBride said. “Cutting expenses is just as important as saving
more money. “If you haven’t accumulated a significant retirement nest egg, your alternatives
are to save more of your current income, postpone retirement by working longer and scale back
your retirement lifestyle. The reality is it will probably be a combination of the three rather than
any one that people will employ” to meet their retirement goals.
Edelfelt said some simple ways to reduce expenses are to trade in your gas-guzzling car for fuel-
efficient used car and shop around for the best rates for car and homeowners insurance. When
you’re planning for retirement, make sure you factor in Social Security. “I assume Social
Security will be there when baby boomers retire,” Edelfelt said. “It may not be exactly what it is
now. It would be political suicide for any politician to suggest getting rid of it. I wouldn’t rely on
Social Security as my sole source of retirement income, but don’t discount it entirely either.”
Plan for a realistic retirement with a lifestyle that fits your budget, he added. “Some people say
they’ll work forever,” he said. “Well, you’re going to have to stop working sometime. Hopefully,
you’ll be able to stop working and have a retirement with some leisure and travel.”
Make sure you save, budget, live below your means and educate yourself on retirement
savings and investing, Edelfelt said. And don’t neglect to think about the nonfinancial aspects of
retirement, he said. Ask yourself what you’ll do with your free time, whom you’ll socialize with
and how you’ll keep you mind sharp, he said. “Don’t worry about retirement, but get started
planning for it,” Edelfelt said. “A lot of people put off planning for retirement and think, ‘That’s
tomorrow.’ Well, tomorrow comes sooner than you think.”
David Burge may be reached at dburge@elpasotimes.com; 546-6126.
- Jonathan Edelfelt’s book, “Who Said You Need Millions? Retirement Strategies for the
Rest of Us,” was published earlier this year by Booklocker.com. The book, with a
suggested retail price of $15.95, is available directly from the publisher and from other
online book retailers such as Amazon.com and Barnesandnoble.com. •An e-version of
the book is available from the publisher for $10.99. - Edelfelt will have a book signing from 7 p.m. to 9 p.m. on Tuesday at Barnes & Noble,
705 Sunland Park Dr. - Another book signing will be from 11 a.m. to 1 p.m. on Aug. 30 at GEM’s GEMS Books
for Kids, 5024 Doniphan, Suite 1B, at Placita Santa Fe shopping center. - Edelfelt will give a free talk, titled “5 Steps to Jump Start Your Retirement,” from 10 a.m.
to 11 a.m. on Aug. 23 at the Dorris Van Doren Regional Branch Library, 551 Redd Road.
Resources:
- ·www.whosaidyouneedmillions.com. The site has links to online book retailers where you
can buy Jonathan Edelfelt’s book. The site also has excerpts from the book, a blog and
six or seven articles written by Edelfelt on retirement planning. - www.bankrate.com. The site has a special retirement section that includes free articles
and calculators to help you save and plan for your golden years. - www.valueyouroney.org. The site contains free information about building a retirement
nest egg, retirement savings for your budget and more.
'You can retire on
less than you think'
less than you think'
