Do You Have Financial Peace - Part 2

August 7, 2015, 12:00 am

 

Planning for Retirement

This morning I was talking to a guy about retirement. He is in his mid-forties with two teenagers still at home. He told me that he and his wife were married when she was nineteen and he was twenty-one.  A friend who was a financial advisor helped them set up a retirement savings plan.  A few years later when he came to work for Elmer’s, he  enrolled in the 401k plan when he became eligible to do so.

Because he has contributed every month to the first plan and weekly to the 401k, he is on track to retire at sixty and someday leave each of his kids one million dollars.  Like many of other Americans, he has worked hard to take care of his family.

He differs from many Americans, however, in that he has consistently saved for retirement. Most people his age have very little put away for retirement. Many financial experts predict that we will have a retirement crisis over the next several years because so many of us aren’t saving for the future.

In the Financial Peace lesson on Retirement and College planning, Dave Ramsey recommends that we put 15% of our income into retirement and illustrates that, as the stock market grows, so do our investments. This is often referred to as the principle of compound interest. The sooner one begins to invest, the more likely for compound interest to work for them.

Are you saving for retirement? When I was younger my excuse for not saving was that I had other responsibilities.  I finally started to get serious about retirement saving in my forties. We are doing alright, but if I would have been a more consistent saver in my twenties and thirties, my wife and I would be in a much better place.

With our company match we only need to save 12% and the company provides the other three percent. Save for retirement. If you can’t contribute 15%, pick a lesser amount. The key is being consistent.

Talk to you next week.

Tom     

 

Posted by The Chaplain's Corner at 12:00 am
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