Life Planning: Saving for Retirement

Planning for Retirement

I’ve said before that I am not a financial advisor. But I have learned a few things along my path. It is very important to save something for retirement. I am a firm believer that we are the makers of our own destiny and as such we are responsible for the planning that takes us to that destiny. That said, I have always been a bit skeptical about the reliability of Social Security benefits by the time I reach that golden age. So I have taken some steps to make sure there is something in the coffers when I need it.

Tip #1: Pay Yourself Each Month:

The first thing you should consider is that saving for retirement should be treated like a bill that you pay each month to yourself. Even if the amount is small it is better than saving nothing at all. I like to tell the story of a young man that I worked with many years ago. Our employers were very generous people and offered us an amazing matching program for a new 401(k) plan. My friend insisted that he didn’t have the money to invest. I tried to tell him that even $5.00 per week would be something. And with the matching he would have $6.25 before the money even went into the account. He did not take my advice. We lost touch, but I suspect that my retirement account is healthier than his. Don’t say that you don’t have the money to do it. When we talked about budgeting we talked about the importance of cutting spending and making sure the needs and wants are separated. Retirement savings is a NEED. Eliminate one trip to the coffee shop each week and you can easily put $20.00 per month into some kind of savings.

Tip #2: Consult With A Good Financial Advisor:

There are many different options to consider when planning for retirement. If your company offers a 401(k) plan that is a good place to start, but don’t limit yourself. A good financial advisor would be best able to guide you. You don’t know a good advisor or how to find one? No problem. A good friend of mine recently wrote a book about that very subject. Check out www.thetruthhelpsyou.com for more information.

Brought to you by Wendy Conte, CB ~ 661-993-9313 ~ wendy@conte.net ~ www.bookkeepingscv.com