Author - Clay Wood
This is a continuation of my last blog about general financial advice vs personalized. You can click here to read the last topic discussed.
You Should Save 10% for Retirement
A lot of advice gets passed around that is not necessarily the best for you. Whether it is for your health, your financial well-being or other areas of your life. We tend to get general advice from friends, family, or work colleagues who are ultimately trying to help, but may not be giving the best advice for your specific situation.
Employer-provided benefits are a great way for employees to maximize their compensation. Some basic benefits that employers provide are paid time off, 401(k) match, and health insurance. Some benefits are paid by the employer or are eligible to employees at lower prices than if they went out into the public market to purchase.
I am sure you have seen this scenario. A car driving recklessly, way too fast, and weaving in and out of traffic. You think to yourself jokingly, “Wow, they must be in a hurry!” only to pull up next to them at the next red light. This is what I think about when I see someone betting on individual stocks, trying to time the ups and downs in the stock market.
Social Security was designed to be an insurance plan. Depending on how much you pay in you get a guaranteed payment later in life to cover your basic needs if you run out of assets when you can no longer work. Of course, as a society we no longer use it that way. People now use it as the base they start with to retire and determine what they have in addition.
You’ve read the articles. I am guilty of writing a similar one. Countless other financial professionals have used the same example. Stop buying expensive coffee, save the amount you would have spent. Then, your savings compounds its investment returns.
I think people spend too much time thinking about that. It’s not the coffee holding your savings back.
The topic of achieving success comes up a lot in discussion with our clients but even more so with the millennials. As we talk about their desires for the future, they share career aspirations and discuss what kind of jobs they would like to have and whether they are on a path that will get them there.