Retirement Guys: I’ll pay you on TuesdayWritten by Nolan Baker Mark Clair | | firstname.lastname@example.org
“I will gladly pay you on Tuesday for a hamburger today.” The famous or infamous words of the character called Wimpy in the Popeye cartoons. Bring back memories? I (Mark) love those old Popeye cartoons. Especially the ones where you can hear Popeye mumbling to himself. If you listen closely you can have a few more chuckles when you hear what he says. In one episode he is eating a lunch of cake and a roast turkey with Olive and says, “I’ll take the cake and give you the bird.” LOL. Classic stuff.
Whenever I think of Wimpy wanting to pay later for immediate gratification today, it makes me think of the character flaws that make all of us human. Wanting satisfaction now and paying a heavy price for it later. Although I am still guilty of procrastination, I have learned from experience that it can come back and bite you in a painful way. I have learned that a little discomfort now can avoid a potential disaster later. As a parent, I have tried to impart my wisdom and experience to my children. Sometimes they listen and sometimes they don’t. I can recall one of my sons’s procrastinating on getting his homework done. I kept asking him if he had it done and he assured me that he had. Not. This eventually led to a painful meeting at the school with the teacher and the principal that was not a happy experience. I can remember myself doing the same thing—putting off until the last minute doing a homework assignment because I knew I still had time. Something came up at the last moment that necessarily diverted my attention, which made it impossible to get the assignment done. I paid the price.
The obvious lesson here? If you wait until the last possible moment to get things done, you are taking a very high risk of getting burned. This is especially true when it comes to retirement planning. Retirement is supposed to be a peaceful relaxing time where you get to sit back and enjoy all the sacrifice and hard work. Who wants to be all stressed out during retirement because you are worried about the future? As The Retirement Guys we see quite often the consequences of mistakes in decision-making and procrastination. It is hard to tell folks that they might have to go back and get a job to survive.
We have talked a lot in the past about inspiration, knowledge and action as being the key elements to success. The biggest of the three is obviously action. Without action, all of the inspiration and knowledge you have can be a big waste. By avoiding “paying on Tuesday for a hamburger today,” you can avoid big problems in what is supposed to be the best time of your life. Here are Popeye and The Retirement Guys action steps for a better retirement:
1. Save, save, save! Set money aside on a consistent basis that you will not be tempted to spend. Set up a forced savings account that automatically comes out of your paycheck or bank account. You will be amazed at how fast this builds up.
2. Take advantage of free money. If your employer matches retirement contributions, take the free money. You would be fool not to. Contribute at minimum what the employer matches and consider contributing even more.
3. Take advantage of tax-free money. Contribute to a Roth IRA. When you take the money out to use it some day you don’t have to pay income taxes. This can be a huge deal.
4. Save in places other than retirement accounts. Get several things going that may offer different advantages.
5. Pay attention to your level of risk exposure. Higher risk may be ok for early years, but as you get closer to retirement account you should be safer and simpler with your money. Some folks do not realize the level of risk they are exposed to as they approach retirement. Do not forget what happened in the stock market in 2008. Get with an advisor right away to do an investment analysis.
6. Look for ways to protect your life savings from a healthcare crisis. This can do great damage to what you have accumulated. You don’t necessarily have to buy traditional long-term care insurance to accomplish this.
These are just a few steps to take. You can take an easy step by going to www.retirementguysnetwork and clicking on the “Things You Gotta Know” button. Don’t wait to pay for your hamburger on Tuesday.
For more information about The Retirement Guys, tune in every Saturday at 1 PM on 1370 WSPD or visit www.retirementguysnetwork.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., Member FINRA / SIPC. NEXT Financial Group, Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537. 419-842-0550.
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