Old Chines proverb: “A journey of a thousand miles begins with a single step”, we should say a first step. When it comes to retirement, what is the first step?
We can all vary opinion, but, as I have experienced, many employees, I encounter, each month, wait until the last month to begin that first step. As our ancient Chinese traveler learned, he will not make the 1000-mile journey if he begins late or may not reach his goal at all.
Let us begin with the finish line. What do you expect, what do you need. We don’t know unless we budget. Begin with looking at your income and expenses now. Next compare now with retirement. Can you identify what expenses you’ll need to pay off or sell? Maybe the sports car is too expensive, or the annual vacation to Europe? More practically and everyday people, maybe the house is too big or expensive and a down-size maybe in order. Maybe a move to a state that will not tax your retirement income? What are your obligations, such as college for Teddy or Medical costs for Sally?
Do you have a retirement plan? If you do not, are you gambling on your future? Is keeping it important if you are risking losing what you have?
Next, consider what will your income be in retirement? Perhaps, if it is not enough, look at options. Defer retirement, get a job or start a business, to raise income.
Once you have determined your budget and retirement income, look at what you have and secure against losses of the economy. Consider this….”am I gambling with my retirement?”
- Gambling: “take risky action in the hope of a desired result”
- Gambler: “a person who risks losing money in the hope of winning a lot more money”
Understandable that accumulation of as much as possible, before retirement, will provide the best retirement, however, if you have lost money in your TSP Fund, in the past, and persist to play the odds, you may be gambling with yours and your family future.
And finally, get ye to a certified Federal Retirement Counselor. One who knows all of the details, benefits and can vision, with you, your future.
