by WayPoints Admin-JBM | May 14, 2015 | Journey toward retirement
I had lunch with a Senior Citizen friend of mine yesterday who is still working as a School Bus Driver. I asked her during our conversation how much longer she had planned on working. Her response was so typical of so many Senior Americans. She told me that she plans on working until she can no longer physically drive. My heart sunk, realizing that her standard of living would become diminished once she is no longer able.
She stated that her and her husband drove to Florida once a year and frequently travel to a camp they own several hours away. So their life is active and they seem happy. Her husband is also still working as a Security Guard and plans to stay there until he is also no longer able.
Once they are no longer able to work or if one of them becomes incapacitated or dies, their standard of living will be reduced to welfare level. This is an outrage! Here is a couple who worked all their lives, made over $1,000,000 collectively and have virtually nothing to show for it. No retirement savings, still paying on debt and will become dependent on Social Security to survive on.
My friends, we must change our behavior with money and develop a different strategy so we can begin to WIN with money. We must find a way to create a healthy Financial Journey so we can keep our dignity well into our Senior years.
Let’s create a financial revival NOW and begin to plan for our future, so we are no longer dependent, but independent in our Golden Years.
by WayPoints Admin-JBM | May 11, 2015 | Journey toward retirement
Most people live their daily lives in a rush writing checks, swiping cards, paying bills, buying gifts and accumulating debt. But, they don’t take the time to pay themselves and invest for their retirement future.
In fact, 63% of Americans at age 64 are dependent on Social Security, Charity or Family members for their support. Only 4% of retirees have enough money set aside to serve their needs and only 1% of retirees are considered wealthy. This is not ok!
The average savings for a 50 year old is only $42,797 but the average cost of medical treatment for 65 year olds over a 20 year period is $218,000.
As of today, 38% of Americans say they are not investing anything for their retirement, but 80% of adults between the ages of 30 and 54 believe they will not have enough money put away for retirement.
Why do we find it so difficult to develop a plan for our future? Is it a lack of motivation? Is it a lack of understanding? Or are we just creatures who believes that it’s ok to delay retirement planning till tomorrow, but tomorrow never comes?
My friends, your future depends on YOU to make it happen. Without a substantial inheritance or a lottery win, you will be included as “An Average American”.
Please do yourself a favor and develop a plan that will allow you peace of mind as you approach your Golden Years. Get motivated, stay motivated and change your Financial Journey.
by WayPoints Admin-JBM | May 6, 2015 | Journey toward retirement
There is so much hype out there encouraging people to develop a budget. All the personal finance Gurus preach about budgets, say you can’t live without one, and teach you how to set up one. BUT, what happens after you sit down and create one?
The focus has always been on allocating your monthly pay into various expense categories and giving every dollar a name or a job to do.
So, every category is assigned it’s designated amount, all the money is allocated, life is perfect and you have a plan….but do you really?
What happens beyond the budget? There is a second step that most people aren’t taught and in my opinion is the most crucial. Life is made up of milestones, life events, goals, and change.
A budget is not a static plan. It evolves, grows and develops over time, so it should be used as a tool to develop a greater plan for your ever-changing future.
If we don’t look forward and calculate life events and change that WILL occur, then the budget within itself is useless. Tracking progress is so important when developing your long-term goals. Most people do not accurately calculate their retirement needs and fall short when that magic day arrives. Many will continue to work into their retirement years because they did not understand what their retirement quotient really is.
What will your retirement portfolio look like as you approach that day of freedom from needing to work? If you are unsure, I can help you devise a rock solid plan.
by WayPoints Admin-JBM | May 4, 2015 | Journey toward retirement
Many people I come in contact with are dealing with some type of health issue, are overweight, don’t exercise, overeat, eat junk, smoke or are involved in a very unhealthy lifestyle. They find themselves in this position due to lack of knowledge, lack of discipline, lack of motivation or overindulgent attitude (You only live once). Many of these people will find themselves in a futile place as they grow older, unable to lead and live a normal life. They will become dependent on others, need to be sustained by medication, require mobility assistance, and require constant medical attention. They will be consumed by disease, restlessness, pain and loss of organ functionality. As depressing as this seems, there is a self-help system that could free you from this bondage. Good health is produced by healthy eating and lifestyle, exercise and movement, weight control and portion control.
Likewise, these same people are dealing with an unhealthy financial life. Many are facing bankruptcy, dealing with foreclosure, receiving annoying creditor phone calls, unable to pay on their credit card debt, or living pay-check-to-paycheck. They find themselves in this position due to lack of knowledge, lack of discipline, lack of motivation or overindulgent attitude. (Sound familiar?) Many of these people will find themselves in a futile place as they grow older, unable to lead and live a normal life. They will become financially dependent on their children or on society, they will rely on Social Security as their sole income, they will struggle everyday with making ends meet, or need to work at Walmart as a greeter well into their 80s so they can put food on the table. They will be consumed by debt and unable to save for their future, work all their life and show nothing for it, and allow over $1,000,000 to pass through their hands with no plan for their future. They will lead their life with no HOPE!
Here at WayPoints Financial Services, we can help you become healthy for your financial journey. We have the tools in place and the knowledge to help you find the peace you deserve. We will provide you with the HOPE and a plan that will turn your financial life around.
by WayPoints Admin-JBM | Apr 28, 2015 | Journey toward retirement
The ‘Rule of 72’ is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. For example, the rule of 72 states that $1 invested at 10% would take 7.2 years ((72/10) = 7.2) to turn into $2. Let’s take a look at a real life example. I have a client who’s retirement account totals $253,500. He earned 8.6% on his money last year. In 8.4 years his money will double to $506,000 and in 17 years his money will grow to $1,012,000 assuming the same 8.6% annual return. The power of compound interest works!
by WayPoints Admin-JBM | Mar 21, 2015 | Journey toward retirement
If you didn’t find your Pot ‘O’ Gold, don’t fret…It’s not too late. Retirement planning can begin today regardless of your age. But, it’s important to implement a plan now so you don’t miss out on the benefits of compound interest.
The biggest barrier to retirement success is failure to plan. People way too often find the whole topic exhausting, especially when the daily financial pressures overwhelm our cash flow planning and consume our attention.
Not planning for retirement though, is a critical mistake. As the years pass us by, we lose the natural investing edge of time. Compounding over time is a huge advantage. It allows our investments to grow exponentially.
Feel like you’ve missed the boat? Nonsense. You are very likely to live longer than you think, so even a mid- to late-career retirement plan strategy can make a huge difference. If you are in your 40s or younger, you have the advantage of time on your side. Don’t delay…get started immediately.
- If you are in your 50s
Many people think of retirement as something that starts at 65 and ends 10 years later. The fact is, many people will live 20 to 25 years beyond retirement. So, it is imperative to have a plan in place that will support us for the extended time.
Power boost your workplace 401(k) to the max and try to add to a Roth IRA as well until you reach a total retirement investment of 15% of your take home pay. If money is tight, consider a part-time job just to fund your retirement planning. Money invested that earns a market return will double approximately every 10 years or so, so over time your retirement account will grow.
- If you are in your 60s
If you already have a nest egg, it’s prudent at this point to begin to scale back risk. However, if you know for a fact that you will work well past 65, and you feel your work income is secure, don’t be in a rush toward slow-growing your investments.
Also, put off Social Security as long as you can. Delaying benefits to the maximum age can increase your monthly payout considerably.
- If you’re already in your 70s
You’re getting a late start, but it’s possible to reduce the financial risk . At this point, saving in low volatility accounts for emergencies is likely the best move, but if you come across a windfall of money, consider investing it.
For instance, downsizing your home might generate some cash, as would an inheritance. If you get any money that you don’t need to spend and your short-term savings is in good shape, a small portfolio prudently invested will be a cushion against the risk of outliving your savings.
Whatever you do, don’t throw up your hands in defeat. You can achieve a more comfortable retirement by setting goals and sticking to them, wherever the starting line turns out to be.
