Tag Archives: inflation

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Retirement?!? Who’s retiring now-a-days?

  By remymartini • January 7, 2013

Whether you’re 20 or 60 or older, you hear the word retirement thrown around a lot. The younger you are the idea of retirement seems so far away and a concern for another date and time. The older you get the more you worry that you haven’t saved enough, how does social security factor in/work, and/or can I afford to retire given the state of the economy?

Retirement means a lot of different things to a lot of different people. But planning for it is key to success, no matter the definition. For example, you love what you do and can’t think of ever retiring and not coming in again. Your definition of retirement may mean stop working 70 hours a week and working 20-30 hours or having the financial capability to come in/out as you please. On the other hand you may want retirement to be never coming in or talking to the office ever again. Maybe it’s something in between. Retirement is whatever you want to make it, but make sure you can define it for yourself and create a plan on how to get there.

Here’s great things to consider when creating your plan:
What is your time frame for your retirement vision?
What is the amount of risk you’re comfortable with?
What are the appropriate investment vehicles to get you there?
How does inflation factor in?
How does social security factor in?
What is the total amount you’re shooting for?
What have you done so far to save for retirement (IRA’s, 401k’s, etc)?

Does this seem a little overwhelming? Understandable, especially when you have a full time job, a family and want to sleep a few hours at night. Whether you’re an expert in numbers and problem solving, sometimes taking the time out to sit down and create a plan can just be the straw that breaks the camel’s back. Hiring a financial planner to guide you through the process and do the hard work for you can save you money and valuable family time. A financial planner is there to help explain where you are, help develop a picture of what you want retirement to look like, and how to get there in a way that is right for you.

If you’re curious to see how you’re doing make sure to check out Waddell & Reed’s personal retirement assessment calculator to see if you’re saving enough!

Until next time, stay sane in this crazy economy!

– Financial Lanscaper

PS. If your plan is to win the lottery to pay for “retirement,” make sure that step 1 is buy a lottery ticket. ;P

 

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Cash is CrAzY and Stocks are solid… Say WHAT?!?

  By remymartini • December 10, 2012 ,

I read an interesting article the other day that is great food for thought. Warren Buffett writes a letter every year for Fortune magazine that is like a little chat. He explains “complex” investing terms or scenarios into a language anyone should be able to understand. The article from businessinsider.com is just a preview, but I found it so enlightening.

A basic breakdown is that though many people find cash the least riskiest investment, it’s one of the worst. I find it to be a comfort blanket for people. Something they’re use to and comfortable with and just really don’t want to part with. The reason Buffett says it’s one of the worst investments is because of INFLATION. I know, it’s a horrible, horrible word so we’ll just call it the “I” word from now on. He points out that the value of a $1 from 1900 has the equivalent spending power in 2012 as 3.8 CENTS. That’s pretty depressing. So for all those grandparent and great grandparents that stuffed mattresses and other poor furniture with cash, it’s not worth too much (not assuming it’s a collectible now).

Stocks, on the other hand, people are scared of because of the big crashes and the huge losses we see on TV. However, from just comparing the stock market in 1965 to now, the stock market is up 13X. That can really put the past few crashes into a bit of perspective. If you’re using the stock market for a long term solution, just keep trucking.

Now he goes on to say that cash has it’s place and he keeps a lot on hand knowing that the value will be depleted due to the “I” word, but it’s just a piece of his diverse portfolio puzzle. Whether it’s to maximize the stock market when it’s down (buying low) or cashing out the stock market (selling high) so that he can flip another stock, every type of investment has its place and you just have to understand what that means for your personal investments.

So what are your thoughts? Do you think Warren is off his rocker, or do you see some value in what he writes?

I’d love to hear your thoughts and comments!

Until next time loyal readers,

Solutions Engineer

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Holy Retirement Danger Batman!

  By remymartini • October 29, 2012

I saw this article the other day on linkedIN about retirement. I thought it was worth sharing.

This issue of saving for retirment has always raised some questions for me to ask people.

What are your thoughts on Social Security for retirement?

Do you save for retirement, whether it’s a 401k, IRA, or some other savings account?

Do you ever really think about retiring (other then those REALLY bad days at work)?

Do you pay attention to your savings/investments?

What active planning have you done for retirement (assuming you want to retire, of course)?

O, and as always, don’t forget about taxes, Uncle Sam needs his. Do you understand taxes in retirement?

Just some questions that I know many people don’t always know or understand the answer to for themselves.

Today I found another great article while distracting myself with Yahoo! (you know you do it too). Is $4million enough for your retirement? Food for thought!

The only way to know is to ask, so make sure you’re asking the right questions and you’re getting the appropriate answers from a qualified professional!

Until next time wonderful readers!

– Financial Landscaper