Who is Aunt Bea & how can she affect my retirement?
Every Baby Boomer will certainly remember the iconic Andy Griffith Show. In December of 1961, “The Pickle Story” aired about Aunt Bea’s consistent failure in making pickles. Though she tried each year to follow the recipe, she annually produced quarts not of delectable pickles, but of “kerosene cucumbers!” Unfortunately, the same scenario often plays out with our individual retirement planning. Each year we intend to get the plan right, yet we somehow continue to get the recipe wrong. How can we break this cycle and create a retirement future as appealing as a banana cream pie?
Work with your spouse to write a realistic story for your retirement.
Too many people have no concrete concept of what they want for their retirement. We rely on vague thoughts that move and change as clouds in the wind. Worse yet, many couples are adrift with two vague ideas that have no points of intersection and no basis in reality. What do you value most for retirement? Where you want live or how much do you plan to travel? What will that require in monthly income? Does your current budget and spending provide the required savable income? Where can you, as a couple, agree to reduce spending to increase the cash flowing into your retirement savings?
Invest carefully in vehicles that help paint the picture of your dreams.
The Christian Churches Pension Plan provides a solid, stable, steady foundational cornerstone for your retirement. In all likelihood, you will seek savings and investments vehicles to provide additional retirement income and assets. A phrase appearing consistently on our Facebook page is, “Read widely, decide wisely.” Choosing investments cannot be done without gathering information and carefully considering your dreams, needs, and risk tolerances. Resist the impulse to jump into an investment based upon a friend’s or acquaintance’s action. What fits their needs may not be good for your family. Remember, “Read widely, decide wisely!”
Start now, taking advantage of time.
Paying yourself should be the second thing you do! Give God the first fruits of our increase honoring His glory and demonstrating gratitude for His Kingdom. The retirement account needs to receive the next funds. Yes, that sounds unrealistic in a world where we need a home, two cars, clothes for the children, medical insurance, a tuition savings account for college, and more. However, if we “Wait until we can afford it,” we will lose the advantage of time. Starting early and taking advantage of compound growth alleviates the pressure faced in later years. Whatever our age may be, there is no time that is too early and it is never too late.
This is a good beginning!
As anyone can imagine, these basic ideas are not all that one will need to learn about retirement planning. These concepts form a basis for understanding what a retirement plan is about. They provide a filter that will inevitably be needed. There is no shortage of overly simplistic retirement concepts touted in print and over electronic media. There are, and will be, waves of opportunities offered and suggested with the words, “If you do not act today it may be too late.” Filter all these through 1) the retirement picture you and your spouse have written together, 2) reading widely and deciding wisely about your personal comfort and risk tolerance level, and 3) the question, “Is this the right time.” Acting upon these concepts and the commitments you make with your spouse is a good beginning to producing an appealing retirement.