The Most Important Decision of Your Financial Life

The best time to plant a tree was 20 years ago and the next best time is today.  Every journey begins with a first step.  Planning for a successful retirement begins with making a decision.

The most important decision of your financial life…. how much do you save for retirement each year?

What is your savings goal?  If you don’t have a savings goal, the odds are very low that you will hit your target.  Your savings goal should include 401k, company match, IRA contribution and taxable savings. Watch this video to find out how much to save for retirement.  Set a goal to save 15% to 25% of your gross income each year.  Feel free to pass this information on to your friends, family and kids.

1. If you use an Advisor, make sure they are a low-cost, fee-only Advisor.  Make sure he/she is a fiduciary for you (not a broker or insurance rep).  Make sure your Advisor signs this pledge!
2. Start saving early in your 20’s, 30’s or 40’s.  If you are in your 50’s or 60’s, you may need to save more.
3. Save consistently each year.  Put it on automatic with direct deposit or payroll deductions
4. Track your spending with www.mint.com (free) or Quicken
5. If you have a big bonus year, consider saving 60% to 80% of your bonus.  Save more when you get pay increases.
6. Let compounding work for you over time.  Find out how to build a more optimal portfolio… why we use DFA vs. Vanguard
7. Don’t panic in times of crisis.  See this post.– Volatility is normal. 
8. Find out if you have problems (the sooner the better).  Most people need a coach to help them hit their goals and maintain their lifestyle in retirement.  If you have over $500k in a portfolio and would like a free 2nd opinion about your strategy, give us a call.  Your retirement will thank you…. email us  for a free 2nd Opinion about your portfolio.

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All the best,

Todd