How far away is your retirement? What have you done to make sure you have the funds to make it happen?
If you do not have a plan or at least know what to do, you will find yourself in trouble as many do. So, first off, it is always best to start as early as possible. If you have not, it is never too late to develop a plan.
Here is a roadmap to get you going on your retirement journey:
First, control your spending! Get on a good budget and stick to it. You tell your money what to do, while not being controlled by it. That means you must spend less than you earn. I know that is hard in today’s “stagflation” and out of control government spending. However, if you do not, then you will not be able to retire. The key is to always spend from your income that is within your budget while keeping away from your savings. How? See our articles on how to budget and save money: https://biblicalstewardship.net/budgeting-ideas/
Second, make sure you are diversified and have a stable portfolio! That means do not have all of your eggs in one basket. Consider what happened in 1987, 2000, 2008, and most recently 2020, you would have lost 40-80% of your retirement savings without diversification or an indexed strategy. In addition, make sure at least one-third of your money is in a no-loss indexed tax shelter. Money that you never worry about losing or will have to pay excessive taxes on.
Third, do not fall in the 401k trap! That is thinking, “I have a 401k with my employer and thus I do not need to worry about it.” Well, when was the last time you looked at your statement to see how it is performing? If you lost any money in the last several years; well, that is not good. Know his, there are far better plans like a ROTH and other retirement plans that would perform far better. Most 401k’s are limited and have poor investment options. Did you know when you lose money in a 401k (because most of the are in D-grade hedge funds) it does not come back? This is basic math, you grow from your point of loss, and you do not get your money back. If you have never lost any money, like with an A+ indexed fund, well then, you would have a lot more money. Right?
Someone properly licensed very few financial advisors for this or know how to do it or have the means to.
Fourth, do not have your money in just one retirement account! Even if it is a good one. Have you heard of the three-legged stool for retirement? One leg is Social Security, which we can’t count on, because our government keeps dipping into it. The second is a pension, which few have these days. The 401k replacements do not work and may not be there for you either. The third leg is a personal retirement savings account. Like an A+ grade ROTH, or a 401k with greater investment options, or another personal retirement savings account that you control, not your employer!
Fifth, get into a ROTH or another tax fee retirement account! When you start a ROTH, or an IUL or an FIA you usually pay tax on the seed and not on the harvest. Thus, a tax-free income when you need it the most. So, the withdrawals will be tax-free when you need to be saving money on taxes the most. (2022, 2021, 2020, and 2019, the total contributions each year to all of your traditional IRAs and Roth IRAs can’t be more than $6,000 ($7,000 for 50 or older) per year.) We can even set up a ROTH for as little as a $100 a month! And we have the “Super ROTH” that has NO contribution or income limits!
We can even convert or rollover your existing retirement accounts to a ROTH or something better. We can set these up, so you control them, not your employer! Who do you want to control Your money?
Sixth, alleviate inflation! If you have done the above, then you have already done this! The keys are diversification, not losing your money, not dipping into your retirement savings, and having a plan. So, your money is outgrowing inflation.
Finally, have a licensed Fiduciary help you! This is someone who is licensed, certified, experienced, and capable to meet with you. By the way that is what we do, and we will do it for free. At the big brokerage firm I was at previously, that meeting with me would cost you at least $1,500 (now $2,500) and you would not get my premium advice or access to executive plans that I will give you now.
A Fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ best interests ahead of their own. They have a duty to preserve with good faith and trust. In contrast, a financial advisor represents a company and not you!
What happens with a Fiduciary? We will look at your financial statements, and investments, go over your goals, and then do a financial needs analysis. Do not pay for this! Why? Because they are selling you something that usually is not right for you and that can lose your money. We represent you and we will not lose your money!
Make sure your money is working and growing for you!
We can help you with all of this… firstname.lastname@example.org
Dr. Richard Krejcir is a pastor and a licensed and experienced Financial Consultant with over thirty years of experience. He has worked for major banks, insurance companies, nonprofits, and families too. He is also an author, Special Ed Teacher, and financial blogger and holds a doctorate in Finance and Stewardship.