What the Olympics Teaches Us About Creating Long-Term Wealth

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Savvly Inc.
August 20, 2024 • Reading Time: 7 minutes

What the Olympics Teaches Us About Creating Long-Term Wealth 

Welcome back to Life is Rich. With the Olympics fresh on everyone's minds, having a winner's mindset when it comes to finance is the aim of this week's lineup. 

So without further delay and with our eyes firmly on our goal, let's kick off this week's installment.

What You Can Learn From Yusuf Dikec When Planning for Retirement

Yusuf Dikec became an instant internet sensation with his cool-as-chips stance while shooting his way to a silver medal at the Paris 2024 Olympics in the air pistol shooting event. This four-time Olympian didn't just roll off the couch and saunter into the arena to claim his prize as some urban legends might have it. 

He took up competitive shooting in 2001 and worked his way up through the rankings before qualifying for his first Olympic appearance in 2008. 

So what does this have to do with your retirement? 

According to the 2024 Annual Retirement Study from Allianz Life Insurance Company of North America, 63% of respondents were more terrified of running out of cash than, eh, death. While that may seem morbid, we thought Yusuf could help with his calm demeanor to pave the way for peace of mind at retirement: 

  • Plan ahead - It takes time to reach Olympic savings 

  • What you do every day matters - Where do you spend? How much do you save? 

  • Be consistent - Consistency can help you make the most of compound savings 

Another Hurdle As the Odds Increase That a Recession Is Looming 

Is 2024 the year the US sees a recession? According to J.P. Morgan, the US is 35% likely to enter a recession by the end of the year. This is up from 25% predicted in 2023. A recession can do a number on your retirement savings, especially if you're looking to retire while the recession is happening. 

Some of the ways to mitigate your retirement losses during a recession include: 

  • Consider pushing out your retirement until after the recession

  • Evaluate your investment portfolio risk and investment classes 

  • Make calculated decisions with the help of an experienced advisor

Pass Those Weights, Please 

We tend to think that aging comes with a natural regression to "softer" sports to protect our bodies. However, research done by BMJ Open Sport and Exercise Medicine reveals that weight training is an essential component of your overall health and well-being as you age. 

The study, performed over four years, found that high-resistance training (HRT) in well-functioning seniors resulted in long-lasting muscle strength. And why does this matter? According to the Centers for Disease Control and Prevention(CDC), Muscle strength helps seniors: 

  • Maintain bone density 

  • Improves balances which reduces the risk of falling 

  • Improves your ability to perform everyday life tasks

Social Security Turns 89, and Like Other Retirees, It's Running Out of Money 

It's not just Gen X that fears running out of money, as the Social Security pot seems to be on a steady downward trajectory, with depletion predicted by 2037. This comes as Boomers head to retirement which will result in a lower workforce, which means there's less money to feed a pot that needs to sustain this enormous outflow of workers. 

SOURCE: 2009 Social Security Trustees Report, Figure II.D6 and Table IV.B3.

NOTES: Alternative I = low-cost assumptions; alternative II = intermediate assumptions; alternative III = high-cost assumptions.

The Good and Bad News of the Week 

Good News 

Bad News 

Savvly Blog on Retirement 

For many, retirement seems like a distant date in an uncertain future. Savvly aims to make retirement savings accessible to everyone. 

In this blog post, we take a closer look at one of the cornerstones of retirement planning: retirement calculations. With the Savvly Retirement Calculator, you'll be one step closer to creating your dream retirement. 

Before We Go 

Rachel Gunn, or Raygun, gave one of the most memorable Olympic performances with her off-kilter breakdance routine at the 2024 Paris Olympics. The routine has inspired some of the craziest memes on the internet. 

If you have a story idea you think we should feature, get in contact with our team at [email protected]. 

Have a great weekend! 

Team Savvly