Financial Planning, Retirement Issues


Action is more Important Than Goals

Action is more Important Than GoalsIt is important to have goals and plans relative to your retirement. However we also know that action is more important than goals since many people have plans and never turn them into action. They never get started with their savings plans, they never seem to set up an automatic savings tool or they just have too many other money issues that they are dealing with and just don’t get around to putting some money away. This can be one of the biggest mistakes that you might make in your life and it will have a significant impact as well. The quality of life you lead in retirement could be less than you expected or desired, you could end up working longer than planned, you might not be able to pay for health issues, you may have to live in substandard housing etc. The list goes on and on. Start early and you will have to save a smaller amount per week than if you begin in your late forties when you are raising kids, paying a mortgage and a car loan. Starting later in life to save for your retirement means that you have to save a great deal more because you will not have the interest or dividend income to add to your savings in your younger years. This compound income can be worth more to you over the long run than all of the money you deposit.

Action is more Important Than Goals – What to Do

Start right now by taking 10% of your salary regardless of what it is and put it into a savings account. Keep doing this until you retire. Once you have enough money in the savings account to invest in an investment, transfer the money so that you get a better interest rate. Invest diversely and never place all of your money in one investment. The earlier you start, the larger the nest egg will be when it is time to retire. If you also have a pension, you will be well off and your savings can be considered a bonus to your standard of life quality.

Action is more Important Than Goals – don’t Touch the Money

It is very tempting to draw on your retirement savings. Maybe there is a new car that is needed. maybe there is a down payment on a home, or major bills to pay, the kids education, etc. Unless it is a dire emergency, do not touch this money. It is your retirement money and will be the only thing that contributes to the quality of life you are planning. Once you take out the money, you lose the compounding of interest income and your overall savings plan will be less than it would have been otherwise.

Get started now and set aside 10% of your paycheck now!

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