Save, save, save
by Jake on Jan.29, 2008, under Jake, Thoughts
If you watch the financial markets at all, you’ll have surely noticed that prices are all over the place right now. The indices are down over the past year and tax season is upon us. What does that mean? Now is the time to save! Combined with the tax credit for putting money into an IRA and the down market, this is the perfect time to fund a long-term retirement account.
Here is a nice little article about saving for retirement. The key to being well-off when you retire is the principle of compound interest. This concept may sound a little nebulous, so here’s the main point of a compounding return: start early.
I’m very passionate about the issue of savings because the current state of America is to spend way more than we save. And my generation is very different from that of our parents in two ways: 1) we will probably live longer and 2) we won’t have a pension. All this combines to a recipe of financial uncertainty.
So, to all my friends and family who read this, I issue you a challenge: confront your retirement now! The early you save, the earlier you retire…it’s really quite simple. You don’t get rich spending your money.
I’ll be issuing some more unsolicited financial advice in some upcoming posts, all of which will be laced with the same message: save hard.
[If you want more personal advice, I'd be glad to give it privately. However, although I'm passionate about this, I'm not a fiduciary]
January 29th, 2008 on 12:24 pm
Hear, hear, and a rousing huzzah.
Live like no one else so that you can live like no one else (wink, wink).
I love seeing you blog again.
Much love,
G
January 29th, 2008 on 4:20 pm
Thanks for the tips! I am trying to get my finances in order so I look forward to your blogs. I am following the advice that you gave to Mom (she passed it on to me).
January 30th, 2008 on 12:52 am
OK, what advice did you give to your Mom? I want it too.
Is it too late for us Jake?
January 30th, 2008 on 5:25 pm
Yes, I will take more advice. Like, where EXACTLY should I put it and who do I talk to to put it there. If you’ve done the homework, may we please take the easy way out and copy? Thanks.
February 2nd, 2008 on 3:05 pm
Yo dog. We are on the same wavelength. Astyn and I had our beginning-of-the-year “financial review” at the start of January and the major change we made to our finances was to start saving for retirement. I was skeptical of the idea, given that we are in graduate school and have no money, but when we used the retirement financial calculators provided on providentliving.org (also available at any financial website), we discovered that the amount you must save every month for retirement increases drastically every year you delay the start of your savings. So, we’re saving now. We are basically counting on not having social security and not having any pension, so if we don’t take care of ourselves for retirement, no one will.
Keep the fiscally responsible advice flowing bro. I will be your V.P. of Fiscal Outreach Relations.
EZ
February 2nd, 2008 on 10:43 pm
This is funny, I’m reading your blog and opening a fortune cookie at the same time. It reads”Solid Gains are possible today, but with a headache.” I guess trying to understand why you waited so long to save can be exausting for the mind. Thanks for the encouragment. Big Jake and the family.
P.S. We got us the hook up 5years ago, makes a big diference.