#retirement #investments #saving
Investing for retirement need not be scary.
It also need not be impossible, no matter your income, age or situation.
Also, a secure retirement happens because of actions YOU take, not what someone else promises to give you.
Nanci Hellmich discussed investing for retirement, based on Tony Robbins book “Money: Master the Game; 7 Simple Steps to Financial Freedom,” in an article published Dec. 10, 2014, in USA Today.
Before getting to Robbins’ seven steps, let’s examine your plans for retirement. Do you believe you have to work until you die? Are you saving regularly out of each paycheck? Did you get so financially hammered during the Great Recession that your retirement is doomed? Did you lose your job in the Great Recession, forcing a premature retirement?
Let’s presume you are still working, even if you are working in a job that underpays you – that’s a growing trend these days. Find an amount, it doesn’t have to be much, that you can take out of each paycheck and put away. You have to look at it occasionally to monitor how your investment is doing, but don’t withdraw it until you retire.
If you are forced to retire before you want to, or are financially able to, try not to eat into that fund too quickly. It’s OK to use the dividends, interest etc., for income, but try to hold onto your principal as long as you can.
Robbins’ first two steps, Hellmich’s article says, is to become an investor rather than a consumer and to know what you are invested in. The former is a mindset. When money gets into your hands, you have to first think about paying yourself, before you think about what you will buy. The latter may require some good advice from someone you trust who will look out for your interests before his own.
Robbins third and fourth steps involve taking action. Don’t be afraid to start a retirement fund because you believe you’ll never have enough money in it to retire. If you are young, calculate what you think you’ll need to retire comfortably, and save accordingly. Then, evaluate your asset allocation, which is a big term for knowing how your money is invested. You may take more risk as a young investor, and perhaps change that allocation to more income-producing vehicles later in life, Hellmich quotes Robbins.
Again, the latter may require some help, but you can help yourself by figuring out ways you can save your money.
The last three Robbins tips again involve your thought process. You have to create a lifetime income plan, and believe you can be among the wealthy. Once you get there, enjoy the sacrifices you have made. “Start where you are, and you’ll begin to find out that there’s more than enough wealth for you,” Hellmich quotes Robbins.
If you are still a child, develop that savings and investment mindset early. If you have change in your pocket at the end of the day, put it in a jar. When the jar is full, take the coins to your local bank and put them in your own savings account. Don’t touch the money until at least when you go to college, or go to work after high school.
As an adult, you will already have the right mindset, and can get more sophisticated about saving and investing for retirement.
Lastly, you may be older, approaching retirement, fearful you don’t have enough money. There are many ways out there to solve this problem. For one of the best, visit www.bign.com/pbilodeau. Check it out with friends in the same situation.
Then, all of you can watch your retirement accounts blossom.

Peter