Not a Secret

Retirement & You

Maybe my parents were the only ones who did this. Though, I find it hard not to repeat with my kids! That is, planning your child’s entire life before they could even say, “Momma!”

I blame growth milestones and trying to do the opposite of what your parents or parent figure did wrong the whole: “I will never do that when I have kids,” syndrome. With that being said, can we also include the teacher who taught us what money was and how to count it? We understand how percentages work, but not enough to avoid being in debt for the majority of our adult lives?

Maybe a thing or two about stocks, investments, 401(k)s. Some pointers on savings for rainy days would have been great! I know, that was not our teachers’ job and some of our parents never knew and were unable to pass this information down to us. That is why I strongly agree with the saying the rich get richer and poor? Well, they just remain poor! I for one would like to change that; stick with me and we all can get a better understanding of how the world works!

401(k)s

Are not only good for retirement but some jobs allow you to use them for tuition reimbursement for certain degrees studied; healthcare expenses, purchasing your first home, and in some cases help with the expenses in unfortunate circumstances such as a loved one passing. Taking 1% to 5%; sometimes greater, from your paycheck and investing it into a 401(k) can save you so much money in the long run! Even better if a company can match your contribution and invest right alongside you.

If you also invest in the right portfolio you can be earning money while you sleep. Some individuals who may choose careers in healthcare or education can enroll in a 403(b), which gives you a better rate of return on your investment but runs a similar setup as a 401(K). When my husband switch jobs he was able to walk away with at the most $15,000 from his 403(b) plan after working at his former company for five years. We decided for those funds to come directly to us, taxed, of course, your welcome Uncle Sam!

When in doubt, ask it out!

Most banks or credit unions should have a Financial Advisor available to answer all questions surrounding investments and retirement. I also suggest getting in contact with the benefits department where you are employed to see your options for retirement plans. If your current employer does not offer retirement benefits; another option will be your neighborhood credit unions or banks. Even some insurance companies offer 401(k)s or something equivalent like a mutual fund, IRAs, CDs, or insurance policies which earns cash value over time. One way or another the money is for the future and not for right now’s use.

Whatever you choose, invest in yourself! This is one way you can do better for your life and chart a different course than what was handed down to you or what you may have learned growing up. Be the difference and change your generational wealth stream to not just achieving a stable life for now but for the future generation.