As I become wiser in life, I have developed less tolerance for backing away from goals; big and little goals, short-term and long-term alike. I find myself saying “Man up!” (or if you prefer WOMAN UP!) a bit more to myself and to my kids (which I know they find immediately inspiring). Long-term goals especially can feel impossible to reach. They can seem so far away that it’s hard to stay committed to the dream on a day to day basis. If there is any goal an individual must have, it’s retirement…right? You can’t escape it, as much as we would like to stay 30 forever (or maybe 25, 25 was a great age!) we get older and no one wants to be 70 or 75 and still HAVE to go to work full-time. I am not sure we as humans were designed to do that, so we must plan. We need to think about how will we pay the bills when we are too old to work or better yet when we just don’t want to work anymore! Retirement is one area you have to just MAN UP! Get your spending in order, figure out your income options, pay off your debts and MAN UP!
We have all heard that the earlier we start saving the better off we will be. We have seen the calculations of how we can save $1,000,000 rather easily if we just start early. (If you started at 25 and saved $4,000 per year or about $333 per month, you would have over a million dollars by 65 with an aggressive- at least 95% stocks portfolio.) What if we didn’t start at 25? You can play with the numbers yourself here on Schwab’s Retirement Calculator and see what you need to start your plan. (Charles Schwab is one of the several good and reputable firms where you can begin an investment account. Please review all tax and fee disclosures before opening a new account. I am not paid by Charles Schwab but have experience working with them personally and professionally.)
There is no one size fits all retirement plan, but you need to get started. Consider planning to live longer than the average 85 estimate and avoid using estimated social security benefits in your calculations. More than half of retirement planners underestimate their lifespan. Let social security be a bonus. Set goals for your lifestyle…THEN GET TO IT!
Put your savings on an automatic investment plan and educate yourself regarding what investments to buy (I will post how to do that very soon). Life will get in the way from time to time but as soon as you can get back on track. Be flexible and adjust your plan as needed. As my Dad and grandparents used to tell me, “pay yourself first!” Get through the rough patch and pay yourself first EVERY paycheck, even if it is smaller than you planned. You have heard it all before and you know you need to do it, so do it! My next post will cover basics how to structure your portfolio and how to begin small without feeling overwhelmed. Additional information will be provided for those who have already begun saving and how to enhance their portfolios as well. Man up!
The blog post or newsletter makes general observations about markets and business and financial trends and may provide advice about specific companies and specific investments. It does not give personal investment advice tailored to the needs, objectives, and circumstances of individual readers. Whether investment ideas and recommendations are suitable for individual readers depends substantially on the personal and financial situation of that reader, which KIT Today, as the publisher of the blog, makes no effort to investigate. KIT Today attempts to provide accurate content in its blog and newsletters to the extent such content is factual rather than analysis and opinion, but KIT Today relies primarily on information compiled or reported by third parties and does not generally attempt to independently verify or investigate such information. Moreover, some content and some of the assumptions, formulas, algorithms and other data that affect the content may be inaccurate, outdated, or otherwise flawed. KIT Today does not guarantee or take responsibility for the accuracy of such information. Please note that investing in stocks, other securities, and commodities is inherently risky, and you should rely on your personal financial and tax advisors. You should conduct your own due diligence in connection with any investment decision.
Disclaimer of Liability: KIT Today disclaims any liability for investment decisions based upon recommendations, information, or opinions in its blog or newsletters. KIT Today is not soliciting you to execute any trade. Nothing contained in KIT Today’s newsletters is intended to be, nor shall it be construed as an offer to buy or sell securities or to give individual investment advice. The information in the blog and newsletter is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject KIT Today to any registration requirement within such jurisdiction or country.
COPYRIGHT NOTICE: PRINT ONCE —- DO NOT FORWARD—-DO NOT COPY Current and past market commentaries are protected by U.S. and International copyright laws. All rights reserved. You must not copy, frame, modify, transmit, further distribute, or use the market commentaries, without the prior written consent. Any download from a secure website or email is meant for only the intended recipient of the transmission, and may be a communication privileged by law. If you received this information in error, any use, dissemination, distribution, or copying of this email is similarly prohibited. Please notify us immediately of the error by return email email@example.com. Although email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by KIT Today for any loss or damage arising in any way from its use.