Just like starting a diet, taking the first step toward actioning your retirement future is always the hardest.
And several excuses likely take front and center – too busy raising my family, spending my free time planning a vacation, or the Fall TV line-up started.
But we know that planning for your retirement takes a million steps and taking that first important step can be the hardest.
The task of retirement planning can (and does) overwhelm many people. Seriously, there are so many things to do and paths to take that it can paralyze and confuse the brightest financial minds.
Which debt should I pay off first? Should I open a money market account at Vanguard or my local bank? What percentage of my salary should I be contributing to my 401(k)?
In my article titled You Are On The (Retirement) Clock, I highlighted my Top 10 picks for things you should do to get started. But even while you work to action that list, I’m going to keep it real simple for you.
Here’s the trick – there is no trick. Anything positive you do today that moves your retirement plan forward is the right thing to do. And with each step you take that leaves one less thing you need to do. Now only 999,999 other things to do.
It doesn’t need to be the most strategic action or something that impresses Warren Buffett. You just need to keep moving forward because there is a lot to do.
So, I’ve prepared a list of 10 easy steps to take today that will provide you with some retirement plan momentum.
This list isn’t in any order of priority and it’s not all-inclusive. If you don’t like any of the 10 actions then add your own.
In fact, I challenge you to build on this list. Consider these 10 items your “starter list.” But take a step forward today by doing something that helps you and your family.
Do It Today!
- Go online to your bank and start your short-term emergency fund with $50 or increase your current fund by $50 today.
- Go online and pay an extra $50 toward your mortgage principal today.
- Go online at Vanguard (or any other company you like) and open a taxable money market account to start your long-term emergency fund today.
- Go to PersonalCapital.com and sign-up to start tracking your net worth and expenses today.
- Go online to your 401(k) and increase your contribution by just 1-2% today.
- Go online to your credit card company and pay an extra $50 today.
- Go to Vanguard (or any other company you like) and open up a brokerage account and start auto-deduction of $50 to the Total Stock Market Index fund today.
- If you are over 50 and already contribute the maximum to your 401(k), start your catch-up (up to $6,000 yearly) contribution by 2% today.
- Reduce your restaurant visits by one per week and put those savings toward your debt or short/long-term emergency fund today.
- Today, find a medical professional (see article) that doesn’t take co-pays or charge you anything until you’ve met your deductible and put those savings toward your debt or short/long-term emergency fund.
BONUS: If you are over 50 years old and you’ve maxed out your 401(k) catch-up contribution ($6,000 yearly), redirect those funds to your credit card, mortgage, or any of your savings/investments.
The list could go on and on. It’s really that simple but dedicate today to doing something that gets you closer to your financial freedom. There is no silver bullet to the process of planning for your retirement unless you are inheriting $2,000,000 today.
Thanks for reading!
Mr. TLR
P.S. Do it – Do it now!