Guess what, a recent study said…37 % of us argue about money in the good old U.S. of A. Not being on the same page can cause tension in many relationships. 42%, from the same study said we feel someone in our relationship ( and it’s not us hee hee) speeds too much money. Question; How confident are you that you will have enough money left after all this volatility to retire someday? According to Retirement Confidence Survey 23% of us are not too confident. 27% say they are not at all confident that they will have enough money to retirement. So half of us think we are going to have to retire. It could cause us to die with our boots on. How does that make you feel? What half do you think you are in? Do you want to change that? I know which half I want to be in. Are we taking the steps that are leading us closer to having enough money for our futures, or further away? If you keep doing what you are doing, will you end up where you want to be? I think the first step can be the hardest. My advice is taking your eyes off yourself. Are you giving away time, talent, and money to help others who can never pay you back? If not why not, A key to getting where you want to go is help those around you. Next Determine where you feel your retirement income will come from. Is your plan Social Security and then keep working to fill in the gap that will be there? Survey says; 45% of us here in America retired earlier that we planned because of a health problem or disability. It is not only up to us to save for our future but we have to keep the money safe from loss as well. How much money would you have had if you had not lost so much so many times in the market? How much money will you need if you are ready to retire? Will you need 30% of your current income? Will you need 50% or more? Can you live on that? Maybe you are setting money aside each month for retirement. Have you made any mistakes that have lost you money? (Maybe you pay someone to make those mistakes for you) How many more mistakes can your savings take?
It is a good idea to set you a budget. Don’t do it to make yourself struggle, but it can help show areas where you might be able to trim back and free up some money to give away and even put some aside for when you will need it in the future. We can have the best plan and the best budget but if we do not help others and ourselves with the money that we set aside each month… news flash it won’t be there in the future. Survey says 100% of the money you do not save will not be there in the future. Are you taking advantage of tax-deferred investments, like your retirement plan at work, IRA’s, annuities? All of these can potentially grow faster than taxable accounts. Remember Number one rule ‘stop losing your money’. If that is also your rule, or you want it to become your new rule call me or someone like me that can help keep you safe!
If you have and old 401(k) from long, long ago, or some old accounts that rolled into something else. If you are retiring or just changing jobs, make sure you do not make another costly mistake with that money you have worked so hard to save. Here are some options to consider carefully.
•You can leave your money right where it is.
•You could take the money out and spend it
•You could move it directly to another tax-deferred account. IRA rollover account.
1.Leaving it where it is. If you like, what your money is doing, how it is performing… well if it’s not broke don’t fix it.
2.Spend it; I am sure it might be tempting to take the cash and splurge or pay off debt that is something to think about. A couple of things to remember you are spending money now that you many need to live on latter. I know sometimes you just have to do what you have to do, but I want to help you make a conscience decision not one were you do not have all the facts. You may already know. Your employer must withhold 20% from the distribution as a ‘down payment’ on your federal income tax bill for that year. Isn’t that nice of them to help us like that. Depending on your age, there could be another 10% early withdrawal penalty as well. Bottom line you may end up with much less than you expected. Let’s look at an example of the cost of cashing out a retirement plan. Say you had $50,000.00 you will need to subtract around $12,500 and then that 10% penalty will take away another $5,000, leaving only $32,500.00. If you had keep the $50,000.00 and only earned 3% over the next 20-years that could have added up to over $80,000.00 and it would have been 100% safe.
3.Roll it over: number one rule ‘keep it safe’ and working for you. Please do not forget the number one goal is to keep you safe so that all your retirement dollars will stay yours and stay working for you.
Finally remember the 2011 DALBAR study; in one of the greatest stock markets in the U.S. history from 1990 to 2000, investors in the S & P 500 earned an average return of only 3.83%. That was before the four biggest economies in turmoil at the same time… How are you doing? Can you afford to make yet another mistake by not getting your money into safety? The hope is to help you understand the danger that lurks in our very near future to our invested dollars. How can anyone think that it is Okay to invest with the kind of world economic turmoil that is all over. Number one goal, Keep your money safe, so that you will have some money left if you want to take advantage of opportunities. What a great time to do what you know is the right thing. Let’s get started. 918-254-2578 x227
Best Regards,
Jerry Szeszulski (Shoe-Shell-Ski)
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