I’ve heard people say the only way to save for a comfortable retirement is to sacrifice and deny yourself many of life’s pleasures now to save as much as possible for the future.
Nonsense!
First, as the cliché goes ‘tomorrow is promised to no one’. Second, and sorry if this is insensitive, but if you make just enough money to pay your bills every month, you either spend too much or you’re under-employed.
My company’s Mission Statement is short and to the point…I help my clients realize a future that is bigger than their past. I take a novel approach to financial and retirement planning by saying that I believe a person can both enjoy the comforts of life AND plan for a comfortable retirement.
Again, tomorrow is promised to no one. Why not go on vacation, live in a nice house, drive a decent car, send your kids to good schools? Notice that I didn’t say going into inescapable debt or take a ‘live for today’ attitude. My philosophy doesn’t excuse irresponsible spending, debt accumulation and a lack of planning for a comfortable retirement. My philosophy does believe that one can do both; live a happy, full life and plan for a comfortable retirement.
It all starts with a plan. I call my planning technique The Live Well-Retire Better™ Method. Here’s why I created this novel approach to financial and retirement planning:
According to the CDC, as of 2021, life expectancy in the United States is 76.1 years. Assuming retirement at age 67, why deny yourself a happy, full life for 67 years to afford some luxury in retirement that may last for only 9 years
So, what’s the secret sauce of this approach…Three keys:
1. Eliminate Debt
Debt is a dream killer. Paying 10, 15, or 29.99% interest every year on credit cards forever is the best way to ensure a lifetime of work. By the way, excessive debt isn’t exclusive to lower income people. It’s common among the highly paid and C-Suite types as well. Yes, I get it…not everyone can write a check for a house or a car. Typically, though, mortgage rates and auto loan rates are significantly lower than credit cards. It’s the massive credit card debt that I’m talking about. Get rid of it and never look back.
2. Minimize Taxes
Some may ask why bother taking the time and aggravation to analyze my tax situation to save a few hundred dollars in taxes? Here’s why…it’s not the few hundred dollars that you might save today in unnecessary taxes that is going to change your retirement lifestyle. But it’s the few hundred dollars that you might save every year, compounded over 15, 20, or 30 years at whatever percent return you’re getting on your investments that will absolutely change your retirement lifestyle!
3. Invest Wisely
This is going to annoy the do-it-yourself investor, but working with an experienced investment professional makes sense for most people. Yep, everything you need to invest for yourself is on the internet. You can also find the symptoms and treatment for most diseases on the internet and detailed directions on how to build a rocket ship. Because it’s there, doesn’t mean you’ll be able to do it or do it well. Find and pay a reputable investment advisor that focuses on planning to help you. If you don’t notice a difference in your situation after 12-18 months, move on and find another advisor.
So, what are the next steps? Build a team of financial professionals that you trust and can hold you to account for the lifestyle changes you need to make. Stop spending more than you make on things that you don’t really need. Pay your taxes-but maximize deductions and minimize unnecessary taxes on investments and other items. Finally, invest wisely using an experienced advisor to lead you.
If you’d like to hear more about The Live Well-Retire Better™ Method, set up a call to talk. There is never a charge or any obligation for an introductory conversation.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. LakePointe Advisors does not provide legal or tax advice.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.
Advisory services offered through Fourth Dimension Wealth LLC, a Registered Investment Advisor. LakePointe Advisors LLC and Fourth Dimension Wealth LLC are separate entities.
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