This is one of the best retirement “tips” articles I’ve read in a long time.
Retirement is generally pretty straightforward. It’s a lot like losing weight and living a healthier lifestyle. Everyone kind of knows what they need to do to reach their goals, at least in a general way, but very few people actually want to do them. It’s much more fun to take a vacation, or go out to dinner all the time than it is to plan for retirement.
This article drives the point home pretty effectively – and focuses your attention on the really big picture things. It doesn’t do you any good to worry about the faucet fixtures if you haven’t built the house yet.
All of the tips are good. Normally, this is where I pick out one that I disagree with or think needs some “clarification.” That’s not really necessary here. But there is one that I do want to elaborate on.
The first thing the article points out is probably the most important – saving is more important than investing. This is 100% correct. We talk a lot about how you should invest, and don’t get me wrong – it’s really important (there’s a reason I’m here). But it’s all for naught if you don’t actually have anything saved to put to work.
Investing is about managing risk. Savings helps you sidestep that risk. The more you save, the less investment risk you need to take – either because you can use those savings to generate more reliable income, or you can accept a lower rate of return and still reach your goals.
McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.
The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.