Retirement Planning Starts Sooner Than You Think� like NOW!

DOLLAR$ AND $EN$E, January 2010, by Brian Bogaert

Retirement Planning
Starts Sooner
Than You Think...
like NOW!

You’re practically just a kid, right? You probably haven’t even figured out what you want to do when you grow up… so why in the world should you think about RETIREMENT? I mean, isn’t that for old people?

What is Retirement?
Retirement is described as the time in our lives when we stop working and live off of the Savings we have acquired over the years (usually with some help from the Government). It’s when we finally get to relax and enjoy doing whatever we want, whenever we want. Kind of like summer vacation all year long! And although retirement may seem like a looooong way away for you, I’m here to tell you that there are many versions of retirement and you can be any age to do it… it’s all up to you.

My Own Story
I am ‘retired’ and I made that happen before the age of 40 (most people don’t retire until at least 60 or older). Now let me clarify, what I mean by retired is that I do not get up any more and go to a job and work for a company every day. I make my own hours and work for myself doing things I love doing but only when I want to do them (like writing this column and helping people learn about money).

Sometimes I wake up late on a week day just because I can. I get to walk my dog while other people are stuck in rush-hour traffic in the morning, I get to go outside and enjoy a beautiful day while other people are trapped inside doing work they hate (and when the weather is yucky, I get to stay inside while others are trapped outside working), I can travel and see my family and friends, work out, go to coffee shops to read books and basically do the kinds of things I like to do whenever I want to do them for much of my time. I do also do some work as well, but because I saved my money, my work is doing the things I love to do so it doesn’t really feel like a job.

This is a form of retirement I love and I’ll tell you how I got here… I knew I didn’t want to work at a J-O-B for 40 years, so starting from a very young age I saved my money while my friends spent all theirs. I always put some away and I learned to invest. I never spent more than I had in the bank and I understood that having the newest, greatest, biggest, most in-fashion things weren’t going to make me happy. It would just make me broke and force me to work for the majority of my life…and I REALLY didn’t like that idea.

You Can Do It Too
That’s why I believe this retirement topic is really important to talk to YOU about right now. I want you to retire early and do the things you love too, rather than doing things you don’t love just to make money.

For example, I bet many of you are probably sitting on a big ‘ole stash of cash after Christmas that you probably want to go out and spend (if you haven’t already!).

Ladies, I know it is hard not to spend! I know it is not nearly as much fun to put some money away in a bank account. Believe me, I understand that there are lots of cool, shiny, fun things to spend your money on and you’d much rather do that than listen to me (and your parents) who tell you to PUT SOME MONEY INTO SAVINGS and INVEST.

Ask Your Parents
The next time you’re sitting down to dinner with your parents ask them a very simple question: if they won the lottery and had all the money they needed for the rest of their lives, would they continue to work at their current job?

Most of them will say no, and even if they do enjoy their job they will likely change how often they go in and work. It isn’t really a whole lot of fun to get out of bed 5 days a week and go to work!! Trust me, I did it for many years. The majority of the population works because they feel they have to in order to continue living the lifestyle they currently have, to support their families and pay their bills. Given the choice, most would stop in a heartbeat.

Ask them about their plans for retirement. Depending how old they are, it could be soon for them or many years away, but trust me, it is in the back of their minds and most of them are very much looking forward to it!

The sad part about retirement these days is that many people don’t do it as soon as they would like to. Either they didn’t save enough money, or they lost a lot of money in this most recent ‘economic downturn’ (see the last two issues for more on that topic) or they’ve had new expenses appear that they weren’t expecting (perhaps a family member has become ill). One way or another, a lot of adults wind up working waaay more years than they want to in order to keep paying the bills. I find that really depressing. These people have worked very, very hard their whole lives and when they were ready to retire and enjoy life they weren’t able to. That’s a sad shame.

The other side is that we all have CHOICES and that leads to:

Money Tip #13
The choices we make today affect our results in the future!

Although I feel bad for some of these people, I also know that many of them could have made different choices to wind up in different circumstances (like saving and investing instead of buying and borrowing from credit card companies). This brings us back to YOU and the money you may have received this past Christmas.

With your new understanding of why it’s so important to start early in the planning for your retirement (which so few people do) you now have the choice about forming a habit of ALWAYS putting away some money. You could start with the money you have now and whenever you get more. Do it so you can live the kind of life you want to live instead of living one you feel you ‘have to’ live because of financial challenges.

Advice from My Dad
You know what? It really isn’t that hard…really! Let me give you an example:
When I started driving, my Dad gave me this rule. “Son, don’t EVER let the gas gauge on the car go below half a tank. Pretend that half way is empty and when it gets close to half, fill up the tank. You’ll never run out of gas and it’s better for the car!” I did what he said (mostly because he checked it and if it was ever below half, he’d give me heck) but pretty soon, it just became a habit for me. And you know what? I have never run out of gas. Thanks Dad (for that and many other great pieces advice).

The good news is, you can do the same thing with your money! If you get $50, pretend you only got $20 and put $30 in the bank. If you got $100, put $50 or even $60 in. If you get $1, put 50 cents in your piggy bank. Make it a habit. If anyone asks, tell them, “I’m saving for my retirement”. They may laugh now but soon they’ll wish they did the same thing. Especially in the future when you’re adults and they drive by your house on their way to work and you’re still in your pajamas with a huge smile across your face :)

What Will You Choose?
Given the choice, would you want to work for the rest of your life or would you want to one day retire and only do the work you choose to do when and if you choose to do it?

Ask your parents one last question: Mom/Dad, if you could go back in time, would you pass up some of the things you bought and instead save or invest that money in order to retire EARLY and do the things you love to do with your family and friends? I don’t believe you will find many parents who say no.

Although you can always WORK to make more money, some day (probably sooner than you think), you will not want to work anymore!!! Be prepared financially, so you always have a choice.

~ Brian

Girls Can Do Anything Magazine

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