"Hold on loosely....but don't let go. If you cling too tightly....you're gonna lose control." (.38 Special)
Why do we need to grow our money? One word - INFLATION!
According to the US Bureau of Labor Studies, $400,000 of taxable income in 1953 is equivalent to $2.8 Million in today's dollars.
When you decide to retire, you could easily be retired for 20 years or more. Do you believe that the costs of living for you will go up - or stay the same? Consider this - in 1990, a loaf of bread costs about $1.00. Today, we pay an average of $2.69 for the same loaf. A postage stamp was only .08 in 1990, while today it's .44....and climbing.
If you have been on a fixed income for the last 20 years, you have suffered a 40% loss of purchasing power. Plain and simple - your money must continue to grow over the long term to keep up with rising costs. You just can't keep stuffing it under a mattress, which is paying about the same interest as a CD today.
So what can you do?
Start by putting more money into your 401(k) plan or IRA. Look at your cash flow, and give yourself a pay raise! Pay yourself first - 10% of your income should go into your 401(k) plan. Meet with an advisor to set up an ongoing program for you. Talk with them about which investments are most appropriate for you in your 401(k) or IRA, based on your time horizon, risk tolerance and future income.
“Some people say they want to wait for a clearer view of the future. But when the future is again clear, the present bargains will have vanished. In fact, does anyone think that today’s prices will prevail once full confidence has been restored?” (Dean Witter, May 1932)
Please Contact Me for more information on how to protect your long term savings and USE your money wisely. I can help you create lifetime income from an IRA or Roth IRA. If you live in the South Bend, IN area, I am also happy to help with 401(k) rollovers or IRA reviews. You can follow me on Twitter, Linked In, or Facebook.
You can also listen to my weekly radio show, Improving Your Financial Health on WHME-FM in South Bend, and archives are available for listening on my website. My book, Help My 401(k) Has Fallen – And Must Get Up is helping everyday people to get their 401(k) plan back on its feet and working harder. Contact me about how to get a copy.