Get Prepared

You’re in a panic because you’re not prepared.

You need a plan and you need to start as soon as possible.  The sooner you start, the better things will become.

I think most of us realize that we need to take care of ourselves.  The government is not capable of providing for our long-term needs, and no amount of loyalty to a business is going to insure that they take care of us.  No, it’s going to be completely up to us to take care of ourselves.  So start now.

Thirty five years ago a first class postage stamp cost ten cents.  Today, that same stamp costs more than four times that price.  So it is with the cost of living.  Over the remainder of your time here on earth the cost of everything you need is going up.  The longer you live, the more everything will cost.  If your expenses this year amount to $50,000, in thirty years the same expenses could cost $190,000 per year or more.

How will you be able to afford the increased costs?  Get your head in the game and start saving.  In order to afford life thirty years from now, you need to be setting aside at least 10-15% of your present income each and every year.    That money should be contributed to tax-advantaged accounts such as your company’s retirement plan or your Individual Retirement Account (IRA).  If your company will match your contribution that’s great.  But even if they don’t (remember, they’re not your mama) you should be taking care of yourself and making the deposits every time you get paid.

The funds inside your tax-advantaged retirement account should be spread across a mix of stocks and bonds (or stock and bond mutual funds.)  That mix should be determined by factors that include your age, time to first withdrawal, and tolerance for account value fluctuation.   No matter the mix, the most important determinant in your success is making the deposits, every month, for the rest of your working life.  Period.  That’s the whole enchilada.

You can’t blame the investment markets for not having enough money in your account.  They’re not listening and you can’t do anything to make the markets perform better (the investment markets aren’t your mama either.)   It’s up to you.  If the performance of your accounts isn’t where it should be, you’ll have to deposit more money to get where you need to be.  Don’t be blaming anyone but yourself.  If you do your part, you’ll get where you need to be.

And, as always, if we can be of assistance, please give us a call or drop us an email.