Schwab

Every month, I get a newsletter from Charles Schwab giving some insight on financial matters. They can range from investing or retirement to a plethora of issues dealing with finances. There are usually some interesting articles that I find useful. Some are over my head and some, I actually can relate to.

This month, one of the articles I came across was very fascinating. It really put things in prospective for me; so much so that I thought I’d post it. I realize this is surper dorky, but that's ok. See below:

Make saving at least 15% of pretax salary a priority. While the house payments may take up a big chunk of your income, get started with whatever percentage you can afford—every day you procrastinate means a bigger struggle down the road. Wait until you’re 46 to begin saving for retirement, and you’ll need to save 41% of your pretax salary to catch up!

Track your spending to find ways of cutting back. Do you really need to spend $4 a day on a double mocha latte? Could you live without an SUV, opting instead for a car that costs less and gets better gas mileage to boot? See “Doughnuts to Dollars” for ideas on how to trim spending. Even the small stuff adds up!



Get used to living on a little less now. It will be a lot harder later on, if you spend at or beyond your means for years.

Take advantage of your employer’s 401(k) or other retirement plan, at least up to any matching contribution. Consider a deductible traditional IRA or Roth IRA, if you’re eligible.

When you get a raise, don’t raise your standard of living. Earmark as much as you can for retirement savings.

Next time you get a bonus, don’t immediately spend it. Try to put most or all of it into your retirement savings.

Resist the temptation to cut back on saving for retirement, regardless of what’s going on elsewhere in your life. Convince yourself that your retirement funds are untouchable; don’t tap the till for anything but retirement.

I hope this might help. I know the whole retirement thing gets so complicated... I like how this simplifies a lot of it. All I know is that I don't want to be depending on our government for my retirement needs. Happy Friday, ya'll!!