by Matiya Hill
Thank you for taking the time to read this post. This week I decided to interview a friend who is a vibrant, newly retired 50-plus year old. This post will give advice to the younger generation and those looking to retire within the next few years. Please enjoy this read and I hope it’s helpful.
BGGM: What retirement advice would you give to a younger person entering the workforce?
Interviewee: I would start saving at least 4-5% as soon as you start working. Save, save, save! Give up your “wants” sometimes and save that money for a retirement nest egg. You are young now but you will not be young forever [laughs]. The choices that you make today will affect your future. Also invest in an insurance policy while you’re young, as you age the rates may increase. Lastly, do your own research (for example, investment property, stocks and mutual funds), and invest in a financial adviser.
BGGM: What investment opportunities do you wish you would have taken advantage of?
Interviewee: I did advantage of this, it’s called cash match. If any employee is willing to match your contribution PLEASE take advantage of that opportunity. However, I wish I would have invested more money into cash match and deferred compensation. Deferred compensation is an arrangement in which a portion of an employee’s income is paid out at a later date after which the income was actually earned. Lastly, I do wish I would have invested in mutual funds over the years.
BGGM: What do you think you could have done to better prepare for retirement?
Interviewee: I wish I would have invested in a personal life insurance versus only using what my employer provided. I also wish I would have purchased several investment properties. The funds used from that real estate would have been used to build my retirement nest egg!
BGGM: Knowing what you know now what would you have done differently?
Interviewee: Well, each person’s situation is different. I would have diversified my portfolio and also focused more on my health. You can have a lot of money but it’s no fun if you aren’t healthy enough to enjoy it! Lastly, always try to keep an emergency fund to help navigate life’s roadblocks.
BGGM: Do you feel like you saved enough for retirement?
Interviewee: No! [Laughs] I retired prematurely due to health reasons, but thankfully I am able to live comfortably due to God and a number of wise financial decisions.
BGGM: Any final tips for our BGGM readers?
Interviewee: Yes, for the younger generation of movers and shakers please take the time to educate yourself in the area of finance and investing, take care of your health, and always keep God first.
As always, thank you for taking the time to read this post! If you are a retiree or newly entering the workforce, please share your knowledge and advice on this topic. Also, please visit/like our Facebook page www.facebook.com/browngirlgreenmoney