Skip Johnson of Great Waters Financial joins Yahoo Finance to share some tips to start off the New Year on the right financial foot and how to best prepare for changes the SECURE Act will make to retirement planning.
Start with a basic. Get education that pays 200k a year, marry thrifty spouse with same kind of education, do not divorce and the rest will come on its own.
R
The top retirement resolution should be to follow the basics: start saving/investing early in life and be consistent (save with every paycheck). Taking advantage of a matching 401k plan should be a no brainer. The power of compounding is lost on many people. Also maxing out contributions when possible, eliminating debt, avoiding risks with your nest egg, planning for multiple streams of income once retired (social security, pensions, dividends, part time work, etc.) and making catch up contributions once you reach 50 should all be part of everyone's plan. And work at staying healthy to reduce illness, injuries and medical costs. I recently found the site Retirement And Good Living which provides information on all these issues as well as many other retirement topics and also has several retirement and health calculators.
T
Also be sure to vote. I don't need to mention which party: all patriotic, pro-capitalism, pro freedom Americans will already know what I'm talking about.
C
Regard debt as your mortal enemy and set a "debt free" date that is five to eight years before your planned retirement date and stick to it. Good people, there is nothing like the debt-free lifestyle!