I manage investments but in reality, I am helping people with retirement. I have learned a thing or two about retirement.
Here are seven pieces of wisdom I have been thinking about lately as I work with my clients.
7. Work hard and save. When Solomon says in Proverbs 6:11 that poverty comes to the lazy like a “robber” and a “bandit,” he doesn’t mean quick like an ambush, but rather, that poverty will follow and harass the lazy at every turn, trying to take away what little the lazy still have. For those of you not yet retired, work hard and save much.
6. Limit your debt. Debt is like the big parachute that slows down a dragster; except, in this case, it is slowing down your retirement savings. Just because you can afford payments doesn’t mean you need it. Debt is the greatest hindrance to retirees.
5. Less debt gives you more peace. Live below what you make and you will sleep better at night. The more you live below your income the freer you will be.
4. Have a plan. Plan how you use your money now and in retirement. If you know where you’re going you will have a better chance of getting there.
3. Hire help. If you don’t have a skill with investments, time, and the desire to continually monitor your retirement plan, then have someone help you. Good investment help will make up for the fees you pay. Don’t be cheap with something so important.
2. Leave your 401k alone. Don’t touch it. Seriously, DO NOT TOUCH your retirement nest egg before you actually retire. Don’t cash it out and don’t borrow against it. If you can’t afford whatever you are trying to buy and this is the last resort then you don’t need it. Unless your house burns down, leave it alone. You will be thankful that you did.
1. Save more money. I suggest workers save 15% of their salary into their retirement plan. If you can’t afford 15% out of your check right now then do what you can and increase it by one percent each year until you get it up to 15%. It’s money, not perishable fruit. Save some for later. It’ll keep.
Money is hard to manage and even harder to make. I know you are stressed out but start thinking about how your retirement is going to go. Make good decisions now so your retirement goes well. You can do this.
Have a blessed week!
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance (IAA), a registered investment advisor.
IAA and Steadfast Wealth Management are separate entities from LPL Financial.