Tuesday, July 15, 2014

Paying attention to retirement

When we started this journey, retirement was the last thing on our minds. While we had a 401k, we stopped contributing out of necessity and basically ignored it.

This summer has seen such a boost in our discretionary income that it occurred to me (duh!) that we might need to rethink our lack of action. So I finally went online and really looked at the account. Overall, it's in pretty good shape. Most of the investments we chose (and who knows how we picked those?) are averaging 11% returns in the long-term. One, however, only averages 5% and then there is the stable fund that we allocated too much to. So I spent yesterday doing some shifting of the funds currently there as well as future contributions.

We also decided to start contributing 2% from DH's paycheck. It's not a lot, but it's a start.

I'm so guilty of just putting financial decisions on auto-pilot and not checking up on them once in awhile. I need to be better about that. Next on my list is finding a lawyer who can help us with our will. While we have one in place, it's out of date and we need to make sure we are covering the bases for DS.

It's threatening to reach 100 degrees today. Hope you all are cooler!

Sarah

5 comments:

  1. Every bit helps! I moved my 2% raise to an IRA (it's only $35 every 2wks). I really wish to up my IRA/401k contributions, but it's just not in the cards right this moment. I contribute, just small amounts. Good luck with updating the will!

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  2. We have been saving 10% but we started at 2%. Hubs checks are already so small it was such an aggravation to me, but as we approach retirement I am sure I will be happy with the results.

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  3. As a recent retiree :) I started making plans years ago; otherwise I wouldn't have been able to retire when I did. You're thinking about it now and taking appropriate steps so no worries my friend. I made my FIRST will just before I left for PEI so that all will be easy for Kazi if anything happens to me when I'm here or on my trip to England. I've heard such horror stories when people don't leave a will and the gov't ends up with most of a person's assets or it dwindles away in the court during probate. You are on TOP of things Sarah!!

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  4. While it is never too late to start saving for retirement, putting it off for too long can take a big bite out of your retirement nest egg.

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  5. Thank you for sharing such wonderful article about go from debt to freedom before going to be retired. I will come back read for more about your blogs.

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