Your Father’s Retirement Plan vs. Your Retirement Plan - the 3 Major Differences
Your Father’s Retirement Plan vs. Your Retirement Plan - the 3 Major Differences
When it comes to achieving financial success in your life, one of your most valuable assets is your ability and capacity to make clear and decisive financial decisions. Procrastination, the opposite of decision, is by far the most challenging hurdle to overcome if you’re to reach your short as well as long-range financial goals.
Reaching Decisions Promptly
Robert Reich, former Secretary of Labor during the Clinton Administration is someone that always speaks truth to power. He has a new book out called “After Shock” that is definitely worth a read. In my opinion, he truly understands the plight of the ever shrinking middle class in our country and is fighting back at every turn he can.
He just posted a new blog about the current drama playing out in DC. Please give it a read: http://robertreich.org/post/2060506381.
Unless your plan for financial independence is based on luck, winning the lottery or an unknown relative that decides to leave you their estate, like most people, you’re going to become financially independent the old fashioned way-you’re going to earn it.
And the way you’re going to earn it is by saving money. And saving money means delaying consumption today (delayed gratification) for a brighter and more prosperous future tomorrow. But that’s easier said than done. The simple truth is spending money is way more fun than saving money.
On Thursday, I watched in shock and horror as the US House of Representatives failed to approve a bill that would have authorized additional insurance for the long-term unemployed. The unemployed do not have lobbyists in DC fighting for them. They are in fact politically disempowered. Yet against this backdrop of events, there’s wide agreement among most economists that UI insurance helps the economy and provides many a chance to barely keep their head above water.
But think about what’s going on here. According to the Center for Responsive Politics, 237 members of Congress are millionaires. That’s 44 percent of the body-compared to (CRP) about 1 percent of Americans overall. CRP says California Republican Rep. Darrell Issa is the richest lawmaker on Capitol Hill, with a net worth estimated at about $251 million. And in the Senate, it’s even more out of whack with 60 out of our 100 Senator’s multi-millionaires. Out of touch much?
So how does the current state of the economy and the state of the stock market in the year you retire, influence the retirement income you have to live on for the rest of your life?
Lower Investment Returns
A friend sent this to me recently...
Whatever your political persuasion may be, the one thing I think we can all agree on as a country, united we stand, divided we fall. As someone that has loved politics for as long as I can remember, it’s hard to witness the lack of civility in our daily discourse. Please read this article with an open mind and please, pass it on to your friends and colleagues. Our best days are ahead of us as long as we learn how to work together again as one nation undivided.
William Thomas says it well in his article, “He’s your President for Goodness Sake!”
One of my favorite clients, Eddie from N.Y., sent me the following 7 principles article. He and his wife are on a quest to reach financial independence (FI) sooner rather than later. This is a goal they take very seriously and is why their financial plan sets specific benchmarks that measure their progress as well as success. They are well on the road to FI. Being in their 40’s, they’ll reach this destination much earlier than most of their friends and colleagues. They have amazing teamwork and can discuss money openly and freely. I love working with couples like them.
Another dear client and friend from Colorado, Terry, was one of my first clients back in 2003. We caught up on the phone today for a financial portfolio review and financial planning “tune-up”. Terry has a heart of gold and continues to wake up each day asking this question: How may I serve? Her attitude of gratitude is remarkable. She’s a light that shines so brilliantly and brightly. She lives each day by paying it forward and helping as many friends as she can with their money issues. I am grateful for her continued support, trust and friendship. Terry, you inspire me.
