When developing a plan for your finances, the toughest question often is: “Where do I begin?” Before investing in stocks and bonds or buying life insurance, before implementing any change or making any decisions, you first need to analyze and understand your entire financial picture.
Having a solid, well-designed plan for your finances is something you can accomplish. With a little time and effort, you can be on your way to spending less than you make, establishing an Emergency Fund, and tailoring your investments to each of your specific goals. Plan your finances wisely, and then commit yourself to your plan.
Let’s begin with some numbers. There were 77 million baby boomers born between 1947 and 1964. Or an average of 4.3 million per year. From 1965 to 1999 there were 140 million babies born. An average of 4 million per year. Not that big a drop.
Not long ago I was asked to give a financial address to a local Rotary Club. When I inquired what particular subject the group might like, I was told that many of the members are at or nearing comfortable retirement, but expressed concern for their children and grandchildren whose futures seem not so promising. With that as my guide, I selected three issues I hoped would fit the bill. You may decide, as I relate the information I passed on to them, whether I chose appropriate topics.
Like most good things, the 401k retirement plan has some strings attached. The company can, in fact, control the choices for investing the money within the 401k plan. But, in this case, it’s a price that’s usually worth paying.
All the talk around the water cooler is about who made money in the stock market. And you’re beginning to feel like the only person who hasn’t joined in. You know that you need to plan for retirement, but right now you’re on the ‘hope plan’. That’s where you hope you have enough money later. In fact, you’ve been meaning to find a stock broker or financial planner to help you. But even that’s tough, since there are so many of them.