Irwin Consulting Management in Singapore and Tokyo, Japan 3 obstacles that stand in the way of retirement | Page 2

The fix: Instead of letting an emotion like fear or insecurity keep you out of the stock market, flip the switch and use them to keep you
aligned with your long-term goals. Research shows that low-income savers who looked at a photo of their children before making a big
financial decision saved over 200 percent more than those who didn't. Or, consider values-based investing — putting your money in
investments that support causes you believe in — to help you stay the course.(You're less likely to pull money away from funding
something you really care about.) And if you're still worried about the markets? Take a quiz to determine your risk tolerance, and then
get started with the asset allocation that's right for you. (Many investing platforms offer risk tolerance questionnaires — here are two
from Vanguard and Charles Schwab.) "For the average American investor, the risk is not that they're going to lose 25 percent or 30
percent in the stock market," says Crosby. "The risk is that they're not going to compound it fast enough to get to where they want to
go."
Obstacle: Procrastinating on saving
Why we do it: In Prudential's survey, 26 percent of respondents said procrastination was their biggest savings challenge. The idea that
our brains are wired for short-term thinking plays a big part in this. Humans are about 2.5 times as upset about a loss as we are pleased
by a comparably sized gain, says Crosby, and it can be difficult to imagine a gain so far in the future. Plus, the idea of compound interest
— and how much of an impact it can have on our bottom lines — can be hard to wrap our minds around.
Good Cents
The fix: Think about what you specifically want your own retirement to look like. Then, in your mind, replace the vague idea of
"retirement" with something concrete, like a beach house with a view of the bay, traveling with your partner or having more free time to
spend with your family. Every time you think about retirement, picture your goal. Even better, look at it every day on a vision board,
whether online (on Pinterest, for example) or on your wall. And if you need to give yourself a serious reality check to get moving? "Get
educated about how much of a difference a few years' delay might have on your ability to retire on your own terms," says Zlatar. Play
around with a compound intere