Welcome to the farm otherwise known as stock market.
So what the heck does it mean? It’s actually super simple:
- Bull: Everything is fabulous, the economy is booming, stocks are rising, and unemployment? What unemployment?
- Bear: Market is hibernating! It’s bad, recession is looming.
So, you think that playing the market all the time with your retirement is a good plan?
Actually, over time, it really all equals out. There are stocks in the bear market that do well, and conversely, there are those in the bull market that tank. Depending on how it is that you invest—conservative, moderate, or super aggressive—and where you are in your life—whether you are just starting to invest, are a late bloomer like me, or are sitting at the gates of freedom—these things could alter or modify your courses of action.
Talking with a financial advisor is your best bet. They’ll help determine where you are and what your financial goals should be. The fact is, the majority of people under-save! Things to consider:
- When do you want to retire? Have you thought about the fact that people are living longer? If you retire at 65 and live to be 100 (I plan to live to 102), that’s a significant nest egg you’re going to need.
- What does retirement look like for you? Are you going to live at the same level as you are today? Are you downsizing? Do you have adequate health insurances in order to not exhaust your savings in the event of an unforeseen crisis?
- How much time do you have and how much do you have saved? I’ve just turned 39 and have enough to get me through about… two months of life? I have been paying into Social Security if I am fortunate to have it exist when I retire, but that is essentially an electric bill payment. I need to be incredibly aggressive at saving and my financial adviser had no problem saying so.
You don’t have to be a financial genius in order to start saving. There are people who do this for a living—your goals and your success are theirs as well.
There is only one mistake you can make right now. ONE! That is NOT getting started, NOT saving enough, and robbing yourself of comfort and happiness when you stop punching a clock. Ok, maybe that’s three, but they are all connected!
If you’ve got questions, we’re here to help. Don’t let fear get the best of you. It’s easier than you think! You may also want to follow/ chat with #Coolest401kGuy. Dude knows EVERYTHING.
Stay classy, America.
Sylvia, aka Debt Girl
PS. Want to know more about the looming retirement crisis that is affecting every single one of us? Get involved and join the conversation with this must see documentary, Broken Eggs Film.