I have been fortunate in my career choices and financial planning for retirement. I enrolled in my employers deferred compensation plan early on in my career. I also spent 30 years in the reserves and active duty with the Army. And I invested extra money from a second or third job I always had into a diverse portfolio managed by a professional. Money well spent. I have multiple income streams; guaranteed annuities and defined pension plans.
On top if that I have a nice collection of collectable firearms. But let me state that I didnt buy solely for investment and growth on the firearms side. I bought to use and to hold some value. With a souse that has no money sense, if she has 50 dollars in the account, she spends it, if she has 500 in the account she spends it. At the end of the week the checking account is at 0. No matter what the week started out. So, if I had money around , the logic is to spend it according to her. SO I sheltered money in guns. Now, I can strategically liquidate certain firearms and now invest that money and watch it grow. Not the best strategy but at least I have more than I would have if I didnt do this to augment my portfolio for retirement LOL.
I have 5 kids. 4 graduated college so far (all in 4 years, no 5-year plan allowed) last one is in 1st year of engineering school. When each one graduated and got their first job, I sat them down and talked retirement planning. Thats right, as soon as they had their first job, we started talking long term.
My basic advice was as follows:
1. Live within your means.
2. Work hard and give your employer the value they are paying you for.
3. Have a plan. Have short term, mid term and long-term goals.
4. Dont make emotional decisions.
5. Stick to your plan. You may have to modify due to circumstances beyond your control. But dont make situations that cause financial problems for the sake of luxury, leisure or laziness.
6. Take advantage of any matching offers from your employer; (I dont care what burden or cramp in your lifestyle it creates) suffer for a year or two until you learn to live with the lesser amount of income. Dont leave anything on the table if your employer is giving you free money. Especially the employers that offer dollar for dollar matching.
7. When you get a raise, always take part of that and increase the contribution to your retirement account.
8. Be an informed investor. Investing is a marathon, not a sprint. Stay away from get rich or abnormally high rate of return investments. If its too good to be true, its too good to be true. (Bernie Madoff ring a bell)
9. Based on current trends in longevity, plan on working till you are 65 and living to 100. (we have no chronic or hereditary Family health issues so their antecedents for the last couple of generations live beyond normal life expectancy.
This is pretty simple and has served me well. Hopefully it will serve them well.
