Armchair Millionaire Community Bulletin: When It Comes to Money, How Are You Doing?
Taking care of your financial health isn’t a one-time event. It’s a series of steps you make over your whole lifetime. Step carefully and you’ll reap the rewards.
New York, New York (PRWEB) November 22, 2005
Ever wondered how you’re doing financially compared to other people? Every year, the American Savings Education Council conducts the Retirement Confidence Survey, an in-depth study of how much Americans have saved and how prepared they are for retirement.
According to the 2005 survey, 52 percent of those surveyed have less than $25,000 in total savings and investments. 13 percent have between $25,000 and $49,999, while 11 percent have between $50,000 and $99,999. And 23 percent have $100,000 or more.
Having said that, though, it’s very important to remember that achieving financial security isn’t a horse race. It’s about much more than how much you have saved at any particular point. Instead, it’s about making a series of decisions over you entire adult life that, added together, determine your financial health.
So pay attention to more than your bank account. Keep your eyes open for those nuggets of financial wisdom that will make a real difference over your lifetime. To help, we asked members of the Armchair Millionaire community to share with us the best financial decisions they’d ever made. Here are a few responses:
“Our best financial decision was to pay off ALL debt. No house payments, no car payments, no... payments. Live well below your means and save. We were able to retire at ages 52 and 51.” --Alan and Kay
“The best financial decision I ever made was to take my parents advice and leave credit cards alone while I was in college. Had I been saddled with a truckload of credit card debt after I graduated, I would have started off on a totally different and dismal path.” --Teej
“Both my husband and I started saving for retirement when we were young: He started at 24 and I started at 20. That was eleven years ago and we have over $320,000 saved for retirement.” --mdonalds
Every stage of your life presents new challenges and new opportunities. My checklist will help you make all the right moves.
The Armchair Millionaire’s Checklist for Smart Lifetime Money Moves
Your 20s: Get out of debt (and stay out). It’s all too easy to finance your start in life with credit cards. On top of that, if you’re a college graduate, you probably have student loans. However, this is the worst time of life to go into the red. Debt is savings in reverse, and if you go deep in debt now, it could haunt you for the rest of your life.
Your 30s: Save for retirement. Sure, retirement is still 30 years away, but this is actually the best time to save for it. Thanks to the power of compounding returns, the money you stash away now will grow much more than money you save later. A $5,000 contribution to your IRA, for example, will grow to $73,653 in 30 years (assuming an average annual return of 9 percent). That same contribution made in your 50s, given only ten years to grow, will increase to just $12,257.
Your 40s: Take care of business. Don’t let some basic financial chores slide, especially if you have a family. If you have dependents, make sure that you have adequate life insurance and disability insurance. Make a will and update it as your financial situation evolves.
Your 50s: Walk the tightrope. You may be balancing the dual demands of saving for retirement and sending kids to college. Plan carefully to achieve both. If you can only do one, focus on your retirement nest egg.
Your 60s: Make the final push. This is it. The kids are one their own and you’re in your peak earning years. Make the most of them by rounding out your retirement funds and paying off your mortgage. As you approach retirement, make adjustments to your portfolio to ensure that it will provide you with the income you need.
THE BOTTOM LINE: Taking care of your financial health isn’t a one-time event. It’s a series of steps you make over your whole lifetime. Step carefully and you’ll reap the rewards.
THE ARMCHAIR MILLIONAIRE WEEKLY SURVEY: How do you plan to survive the holiday season with your finances intact? Log on to www. armchairmillionaire. com and let us know.
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Lewis Schiff founded the Armchair Millionaire Web site in 1997. His first book, The Armchair Millionaire, was published in 2001. Schiff's newest report, "How to Know When You Are Rich," is now available at www. armchairmillionaire. com.
CONTACT INFORMATION:
Lewis Schiff
Armchair Millionaire
877-833-2823
Http://www. armchairmillionaire. com (http://www. armchairmillionaire. com)
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