How Life on the Average 401(k) Balance Will Look

America’s retirement savings balances continue to be alarming. In a 2014 study, the Employee Benefit Research Institute (EBRI) estimated that 40 percent of us would not be able to cover basic expenses once we are no longer earning a paycheck. The situation has not improved.

The following table shows average and median retirement savings by age from the Vanguard How America Saves 2018 study.

Age Range Average Balance Median Balance
Less than 25 $4,773 $1,509
25 to 34 $24,728 $9,227
35 to 44 $68,935 $25,800
45 to 54 $129,051 $46,837
55 to 64 $190,505 $71,105
65 and over $209,984 $64,811

Average balances are skewed high by a small number of large accounts. The median balance indicates that half of near retirees have $71,000 or less in savings.

Of course there are issues with these numbers. Vanguard’s study is based on participant balances in Vanguard retirement saving plans. It is possible that participants have balances elsewhere in prior employer savings plans or in individual retirement accounts. Participants who have worked at their jobs longer do tend to have higher balances. But the EBRI’s study indicates missing accounts probably isn’t the primary reason for the low balances.

Using the 4 percent rule, with the average balance for the 55 to 64 set of $190,505, you could reasonably withdraw about $635 per month and have your savings last through your retirement. At the median balance you could withdraw about $216 per month.

Social security will provide some help. The average Social Security check after the recent cost of living increase is $1,461 per month. Between the average savings and the average social security check, you would have just over $2,096 per month to live on. With the median savings you would have $1,677.

If you are a couple, and you are both getting the average Social Security check and you each have the average in retirement savings, your monthly income would be around $4,200. That might be reasonably comfortable if you’ve paid off your mortgage. The Massachusetts Institute of Technology Living Wage Calculator indicates that amount covers basic living expenses in Portland, Oregon, is generous in Cleveland, Ohio, and not nearly enough in San Francisco, California. If you’re both at the median savings, of these three cities, you’d only be OK in Cleveland.

But savings balances for women tend to be only two thirds that of men, and women’s Social Security benefit is also lower on average. Women often work in lower paying jobs, and many have periods with no earnings, because they stayed home to take care of children or other family members. These factors lower both their savings and their benefits. So an average or median couple’s available income may be lower than double the individual average or median.

How do these numbers stack up to what you’re currently spending? According to University of Minnesota data, median household income in 2017 was about $5,167 per month before taxes. At the median savings rate, with Social Security (assuming both you and your spouse have the same savings and Social Security benefit), your retirement income would be about two thirds of your current income.

Of course you are neither average or median. Your situation is unique, but poverty in retirement is becoming more and more common. If your savings are falling short of what you need, what can you do?

The first step is to get a handle on what you have.

  • Understand your total savings balances for retirement and how that stacks up to the cost of your current lifestyle.
  • Find out what your other sources of income will be. You can estimate your Social Security benefit at www.ssa.gov with either their quick calculator or by setting up your own account.

The next step is to develop a strategy for closing any gap you may have.

  • Can you save more money? If you can, you’ve already taken a step closer, because you’ve reduced the cost of your lifestyle.
  • Can you reduce your cost of living in retirement, by making changes in your lifestyle or changing where you live?

The key to ensuring you have a comfortable life when you stop working for pay is to know what you need to do. Even if you have work to do and limited time, your confidence will rise simply by making a plan. There is no time like the present to get started. Wherever you are, you will have the most options for a better future if you start today.

Photo by Matthew Bennett on Unsplash

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For a comprehensive, step-by-step guide to building your own financial plan, pick up my book, “Save Yourself; Your Guide to Saving for Retirement and Building Financial Security”. It is now available on Amazon.

How to Clean Up Your Financial Junk Drawer

Today’s post comes from guest writer Aiden White.
Aiden is a San Francisco based writer. Discussion and debates on financial and political subjects are her forte. Being a debt fighter in her personal life, her goal is to share innovative thoughts and knowledge in the debt communities. Get in touch with her at aidenwhitejoe@gmail.com.

What’s in your financial junk drawer? Is it incomplete goals from 2018? Or could it be that you are not coming clean with your partner on some financial issue? Like the junk drawer in your kitchen, you may be reluctant to look at what is lurking in there. But to be successful in reaching your goals you have to sort through it.

Incomplete Financial Goals

It’s easy to say you want to do something, but it’s harder to commit to it. Saving more money or reducing debt are common New Year’s resolutions, but if you weren’t successful in achieving your goals in 2018, it could be that you didn’t put enough specificity around them. Here are a few common goals and how to define them in a way that will motivate you.

Build an emergency fund

An emergency fund is savings that will help you in the event of a personal financial crisis such as the loss of a job, a prolonged illness or an unexpected major expense. Your emergency fund should be enough to cover at least three months of basic living expenses. Yours may need to be bigger depending on your circumstances.

This is your top priority. To help you achieve it, define how much you need to save and determine exactly what you will do to save it. For example, you might decide to get a jump on your savings by dedicating your next bonus or tax refund to it. You might decide to cut out restaurant trips until your emergency fund is in place.

Set milestones. Determine what you will save each month, have saved in six months, etc., and when you will complete your emergency fund. Whatever your strategy, you will be more likely to achieve your goal if you have one.

Get out of debt

Debt creates financial insecurity. With debt, your emergency fund needs to be larger than it otherwise would need to be, and you are more prone to a financial disaster.

Consider consolidating high-interest credit card debt or multiple credit cards to a 0% APR balance transfer card. You may also be able to consolidate other unsecured debt like payday loans, utility bills, medical bills, personal loans, etc.

Once your debt is consolidated and you are down to your lowest interest rate possible, you can pay down your debt using a strategy such as the debt snowball. In this strategy you make only the minimum payment required on all your loans except the smallest one. Pay as much as you can on that one. Once that is paid off, take the full monthly payment you were making on the smallest loan and combine it with the minimum payment on the next smallest loan. Continue through the remaining obligations.

As with your emergency fund, you’ll need a strategy for raising the money to make extra payments on your debt. Determine what you will do differently as part of setting your goal.

Create and follow a budget plan

A recent survey revealed that only 32 percent of people make a proper financial budget. Your budget is your strategy for achieving your goals.

If you need guidelines to get started, experts suggest a 50/20/30 rule. 50 percent of your money should be used for essential spending (rent, transportation, utilities), 20 percent should go towards completing personal financial goals (saving and paying off debt), and the remaining 30 percent could be used for discretionary expenses.

Save for your retirement

Supporting yourself in retirement takes a lot of money. To make it as painless as possible, you need to start saving for it as soon as you can. A recent survey from Provision Living revealed that 43% of millennials have $5,000 or less in savings for retirement.

Start by taking advantage of your employer sponsored retirement plan, especially if they offer to match your contributions. The automatic contributions will make saving easier for you. If your employer doesn’t offer a retirement savings plan, open a Roth IRA. You can make those contributions automatically as well by having your employer make a direct deposit from your pay to your IRA account.

Hidden financial secrets

According to creditcards.com, one in twenty people in a serious relationship have a secret bank or credit card account. Whether you’re embarrassed by a purchase you made or you’re keeping a slush fund so you can spend money without discussing it with your partner, this could be considered financial infidelity.

The problem is that many of us still hesitate to talk about money with anyone, even with the person whom we love the most. Keeping financial secrets can ruin your relationship as well as create grave financial problems. This corner of your junk drawer may be hard to face, but you must for the health of your relationship and your finances.

That financial junk drawer is causing you stress. Unfinished business and unrevealed secrets will stay on your mind until you resolve them. Perhaps this year’s resolution should be to get rid of the junk drawer all together.



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Save Yourself is now available on Amazon




It’s Here!

Thank you to everyone who has followed my posts for the last few years. I am extremely excited to announce that my book is now available on Amazon!

Save Yourself is a comprehensive guide to saving for retirement and shoring up your financial security so you can do whatever it is you want. Through the stories of real people, it shows you exactly how you can make the changes that will allow you to save for a long and secure retirement so that you don’t need to work for pay. In addition, it covers other aspects of true financial security, giving you peace of mind throughout your life.

Early reviews are very positive. Here’s one that a reader was kind enough to post on Amazon.

The Save Yourself guide to retirement planning justifies the need to take control of your financial security with meticulous statistical research and lays out the step-by-step plan to reduce debt, budget and achieve financial independence. If you are putting planning off, author Grandstaff’s remark that “The monthly savings requirement more than doubles for every ten years you delay” is a sobering statement to prompt action to read her work and get started today.”

Happy reading! Reviews are very important to help other readers find the book, so please post one back at the same Amazon page. Again thank you for your kind attention, and have a wonderful holiday season.

Eight Financial Things to Check Along With Your Smoke Detector Battery

A common bit of advice for the change of seasons and daylight savings time is to check your smoke detector batteries. It’s a good guidepost on the calendar for ensuring you take this important safety precaution. The end of daylight savings is as good a time as any to check up on your financial preparations as well. Here are the important things to review:

Employer Benefits

  • November is also open enrollment month for many company benefit plans. Your options and premiums may have changed. If you work for one of the many companies who are moving to a high deductible health care plan, check how your deductible has changed. If it has gone up, plan on adding to your savings to cover the difference either in a health savings account, or if that isn’t available, your own emergency savings. If the premiums have gone up, prepare your budget for this increased expense.
  • Review your selections in your retirement savings plan. Make sure you are contributing at least enough to get the employer match. If you’ve got an emergency fund and have paid down your non-mortgage debt, increase your contribution. In 2019, you can contribute up to $19,000 if you’re younger than fifty and $25,000 if you are over fifty.
  • If you are investing on your own, make sure your allocation is appropriate for your age. A common rule of thumb is to have the amount equal to 110 minus your age in stocks. The remainder should be in more conservative bonds. If you are using a managed account, update your information with the manager, so they can make sure your allocation is still correct. If you are using a target-date retirement fund, you don’t have to do anything.
  • Check the beneficiary designation on your retirement account and life insurance. Update them if appropriate. Your beneficiary designation determines who gets your retirement savings and insurance benefits regardless of what other documentation you may have. Do not make your children who are younger than eighteen the beneficiary of either. Minor children cannot receive distributions until they become legal adults.

Other Things to Review

  • If you have IRA accounts outside your company retirement plan, review the beneficiary designations on those too. If you plan to make a contribution in 2019, the new limit is $6,000 for those under fifty and $7,000 for those over fifty.
  • Review your life insurance. You can calculate how much you should have given your circumstances at Lifehappens.org. Update your beneficiaries on these policies too.
  • If you don’t already have disability insurance through work, consider buying your own policy. Lifehappens also has a calculator to help you know what to buy. While most understand the need for life insurance, only about a third of working people have disability insurance. You are much more likely to become disabled than you are to die prematurely.
  • If you have a will, a healthcare directive, and medical and financial powers of attorney, now is a good time to review what you put in those documents and update them if needed. If you don’t have any of these, put getting them on your New Year’s resolution list. See my previous article on preparing these documents to help you get started.

Your financial security needs constant upkeep. It’s easy to forget to maintain what you’ve put in place. Calendaring a time of year for a regular review will ensure your important decisions don’t become out of date. Now that the seasons have changed and the sun is going down earlier, review your own financial preparations.

Photo by Wil Stewart on Unsplash

When Your Money Makes More Money Than You Put In

Saving money is hard. As human beings we are naturally wired to place our immediate needs (or wants) ahead of our future needs. Long term goals, like retirement, seem particularly daunting. The numbers are large, and the payoff is a long way off. Would it help to know that it gets easier the longer you do it?

Yes, the more consistently you set money aside the easier it becomes, because you are developing a habit of saving money. If you save through your company retirement savings plan, it’s even easier, because the money is whisked away before you get it.

But that isn’t what I’m talking about. The more money you save, the more your money works for you. Your money starts making money through the magic – actually the math- of compounding. Here’s what you could look forward to if you were to save the same amount of money each year, and earn an annual investment return of 7 percent.

  • In eleven years, the earnings on your total savings will match your contribution in that year.
  • In about six more years, the earnings on your total savings will be double your contribution in that year.
  • In about three more years after that, the earnings on your total savings will be triple your contribution in that year.

Of course if your investment return is lower, it takes a bit longer for your investment earnings to match your savings contribution. If your return were only 5 percent per year, it would take about fifteen years for the earnings to match your contribution. But there is a similar pattern of doubling and tripling your contribution over ever shorter time frames following that.

Admittedly, I’m both a money and a math nerd. I find this half-life of time to essentially gain an extra year of savings through the earnings on what you’ve already saved exciting. Who wouldn’t appreciate their money working harder than they do?

That is why it is so important to begin saving for your long term goals as soon as possible. The more time you have, the more your money can do the heavy lifting for you. Your total contributions toward your goal can be smaller.

If you are struggling to find the motivation to save for something that is decades away, keep in mind that you don’t have to do all the work. Saving money is hard, so make it as easy as you possibly can. Take advantage of the magic of compounding. Save early and save often, and you won’t have to save as much.

Photo by Mert Guller on Unsplash

 

 

 

Freedom and Financial Security

Wouldn’t it be nice to have complete control over your life?

Quit the job you hate. Travel for a year or two. Work for a non-profit despite the lower pay. Wouldn’t it be great to be able to do these things, or whatever else is on your list, without fear?

You don’t have to be rich to live your life on your terms. Saving in a retirement account can give you this freedom. I’ve talked to many people who have been able to do all these things because they had retirement savings. And they didn’t even have to touch their accounts.

One couple I know took two years off work and traveled the country in their RV. They weren’t rich. One was a public school teacher and the other was an IT manager at a financial services firm. Yet they were comfortable giving up their jobs to see the country while they were still young enough to enjoy it.

They were diligent savers. They had no debt, their retirement savings were on track, and they had money for emergencies. While they traveled, they took part-time, minimum wage jobs to cover their costs. They didn’t need to draw on their savings, and because they had retirement savings, it was not a setback for them to skip contributing for a while.

A woman I met with recently, plans to leave her career early and work for a non-profit in a field for which she is passionate. She’s not rich either. She is a project manager now, but she’ll spend the last decade or so of her working career doing something she loves.

It doesn’t matter that she won’t be bringing down the same pay, because she’s already built up her retirement account. Her low living expenses will allow her to maintain her lifestyle with less income, and she won’t need to dip into savings. She won’t need to contribute to retirement savings either, because what she has will continue to grow.

Saving for retirement early in your career is more valuable than saving later in your career. The early money you invest earns investment returns longer, and grows larger, than money you invest later in your life.

Saving early gives you a cushion that can allow you to stop saving sooner. With a 7 percent average annual rate of return, you would only need to save half as much per month now as you would ten years from now to accumulate the same amount of money at a traditional retirement age. The earnings on your money’s earnings will carry you.

If retirement seems a long way off, or you can’t imagine what you would do if you weren’t working, it still pays to save for it. Your retirement account can give you the flexibility to do the things you want without touching it. It frees you to save less, or take a break from savings all together. It gives you both freedom and financial security.

 

 

Double Your Salary in Savings by Age 35 or Double Your Savings from Salary

This last Monday (May 21st, 2018), Buzzfeed highlighted the Twitter responses to a recent Marketwatch article that said by the time you are 35 you should have saved twice your salary. Some of the Twitter comments were very funny. Here are a few from the Buzzfeed article.

By the time you’re 35 you should have saved at least half your sandwich for lunchtime instead of noming it at 10am.

By age 35 you should have approximately 10 times the existential dread you had when you graduated high school.

By age 35 you should stop paying attention to condescending life advice from strangers writing think pieces.

While accomplishing such a feat seems incredible, there are reasons why it is a good benchmark. First, it is a reasonable savings rate for anyone leaving college. The math follows. Second, it’s necessary unless you want to give up much more of your income later.

To have twice your salary in savings in ten years, with a reasonable rate of return, you would  need to save 15.0 percent of it. That is common advice for those beginning to save in their twenties. If your employer matches your contribution to your retirement account, you could save less.

Say your starting salary when you left college was $45,000. With annual increases, you now make about $54,000. Your employer would contribute 5.0 percent to your company 401(k) if you contributed at least that much. You only have to contribute 10.0 percent of your salary to save 15.0 percent. You would contribute $375 each month to start, and your employer would contribute $187.50. Your and your employer’s dollar contribution would grow with your salary.

Your share of the contribution would be less if you contribute pretax dollars in a traditional 401(k). With a combined state and federal tax rate of 24 percent, your paycheck would only have been reduced by $285 per month to start. For $285, you would be saving $563 every month with your employer match.

At the end of ten years, assuming a 7.0 percent rate of return, your balance would have grown to over $105,000, which is almost double your current salary. Your contributions would have totaled $48,781 before tax and $37,073 after tax. With the employer match and market returns, doubling your money in ten years is very possible.

If you haven’t been saving a total of 15.0 percent of your income, between you and your employer, prior to reaching age 35, you’ll need to save much more after to be able to maintain your current lifestyle when you eventually do retire.

If you begin saving in your 36th year, to accumulate the same amount of money by age 65 as you would have if you started saving at age 25, you would need to save a total of 28.0 percent of your salary, using the 7.0 percent return assumption. If your employer matches 5.0 percent, you still have to contribute 23.0 percent of your salary. You would need to give up more than twice as much of your take home pay to arrive at the same balance.

On the surface, to have saved twice your salary by the time you’re 35 seems outlandish. Who could save that much? But if you take into account market returns, it’s not as crazy as you first thought. Add in typical employer matching contributions, and it is down right doable. If you didn’t manage it, you can still get to where you need to be. You’ll simply need to save more.

When to Take Social Security

My husband, Jeff, recently turned 60. It’s an interesting age. It’s as if you’ve crested some hill, and can now see retirement laid out before you. Jeff has been retired for five years, but his friends who are still working are starting to think seriously about what’s next. Conversations on the topic inevitably turn to Social Security claiming strategies.

Should I take it early, at age 62, is the usual question. A few have done some math to arrive at a dubious conclusion. If you assume you live to a certain age, say 80, you will get the same amount, in total, from Social Security whether you claim it at 62 or the normal retirement age of 67, despite the larger benefit. If you wait until you are 70, you’ll actually get less money. Here is an example of the calculation.

SS Claim Strat

The first problem is you’re not likely to die at age 80. In the absence of some known health issue, at the age of 62, men can expect to live to be 84, and women can expect to live to be 87, according to the Social Security Life Expectancy Calculator. That change alone makes a significant difference in the total benefit you can expect to receive, and claiming at 62 no longer makes sense, if your goal is to maximize your life time total benefits.

SS at Life

If you live to be 80, it turns out you are likely to live to be 89 if you are a man and 90 if you are a woman. At those ages, the difference in life time benefits between claiming early and claiming at the full retirement age grows to $52,000 and $58,000 respectively.

But all of these calculations miss an important purpose of Social Security. It is a guaranteed income that supplements your retirement savings. If you wait to claim Social Security until your full retirement age, or later, the larger benefit will allow you to take less from your savings, and therefore your savings will last longer. Since you really don’t know how long you will live, you need your savings to last as long as possible.

Say that you have $1 million saved for retirement and you need $60,000 per year to maintain your current lifestyle. Also assume your savings will earn 5.0 percent per year. If you claim Social Security at age 62, your savings will only last until you are 92, whereas if you wait until age 67 to retire and claim Social Security, the higher benefit means you are not likely to run out of money ever.

If you consider that things may not work out as planned, that extra buffer is even more important. About two thirds of people over the age of 65 are expected to need long term care sometime in their life, according to a paper by the Society of Actuaries. Long term care will sap your savings quickly. The higher social security benefit you receive at the full retirement age will leave you with more savings to deal with these higher expenses.

A higher benefit will also provide you a buffer against the vagaries of the market. Your savings won’t earn 5.0 percent every year. Some years it will earn more and some less. The larger your Social Security benefit the better you will be able to maintain your lifestyle in the event returns aren’t as high as expected.

Maximizing your lifetime Social Security benefit shouldn’t be your primary goal. Making sure you have enough money to last your lifetime should be. You are more likely to realize the latter goal if you wait to take Social Security until your benefit is higher.

 

 

 

Four Things Retirement Savings and Going to the Olympics Have in Common

I love the Olympics. Amazing people from all over the world converge to do amazing things. Things that most of us haven’t even dreamed of. But those athletes did. And that is the main reason they are in Pyeongchang.

Their dreams were so important that they set aside hours a day to train. They gave up everyday comforts. In an interview, Adam Rippon, from the men’s figure skating team, talked about living on apples he snuck from the gym, because he didn’t have enough money for groceries. Yet their dreams were so important the sacrifice was worth it.

You may not have your eyes on an Olympic medal, but some of your goals can be just as daunting. Having the financial security to one day leave your job and not worry about money is likely one of them. That goal requires many of the same disciplines as an Olympic dream.

First you must define your goal. Olympic athletes don’t get to there by wanting to be Olympians. They get there by wanting to be the best at short track speed skating, or half pipe snowboarding or cross country skiing. You must define your retirement goal in terms of how you want to live when you stop working for pay.

That can be a tall order. Who knows how you’ll want to live decades in the future. Some may have a vision of it, but if you don’t, how you live today may be a good starting place. From that you can get an estimate of how much money you need to fund your lifestyle. Fortunately there are many free resources on-line to help you do the math. The following are a few you can try.

Bankrate Retirement Calculator

Nerdwallet Retirement Calculator

CalcXML Retirement Calculator

Next you need a strategy. Athletes have training and diet regimens. Similarly, you need to decide what you will do so you can save for the future. Where is the money for savings going to come from?

For some, simply taking the money out of the picture, through an automated savings program like your company retirement savings plan, is all that’s needed. Others may have to figure out how to free up some money first so it can be saved. Creating a spending plan, otherwise known as a budget, will help you sort out what you value and what you don’t in your current spending. Goals have a way of shining a light on your trade offs.

Then you need to practice and monitor your progress. Olympic athletes only get where they are through practicing their skills. They enter competitions to see how they are progressing toward their goals. They compare their performance to other athletes in the same field to learn what they need to improve to be better than them.

You also need to practice and measure your progress. Decisions you make every day will help you stay on your spending plan. Checking your actual spending relative to your plan and regularly reviewing your balance against shorter term savings goals will allow you to make adjustments so you can improve your progress.

You don’t have to do it alone. Olympic athletes usually have a family that supports their dreams and a good coach. Get help with achieving your goal. Make sure your family is on board with saving for your future, and enlist the help of a financial planner if you are not making the progress you want. To find a Certified Financial Planner in your area search letsmakeaplan.org.

Big goals are daunting. Your future financial security is no less of an endeavor than pursuing an Olympic medal, and the path to success is the same. You have to know what you want, develop a strategy for achieving it, practice your skills, monitor your progress and get help when you need it. It takes a long time, so the earlier you begin the better off you are. Decide today to begin pursuing your own dream.

Image courtesy of franky242 at FreeDigitalPhotos.net

 

The 12 Days of Financial Security for Christmas

 

Forget the birds and performing artists. These are the 12 gifts of financial security!

On the first day of Christmas my true love gave to me a fund for emergencies

On the second day of Christmas my true love gave to me a budget for expenses and a fund for emergencies

On the third day of Christmas my true love gave to me a maxed out retirement, a budget for expenses and a fund for emergencies

On the fourth day of Christmas my true love gave to me a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the fifth day of Christmas my true love gave to me a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the sixth day of Christmas my true love gave to me full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the seventh day of Christmas my true love gave to me insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the eighth day of Christmas my true love gave to me a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the ninth day of Christmas my true love gave to me a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies

On the tenth day of Christmas my true love gave to me a sound investment strategy, a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies.

On the eleventh day of Christmas my true love gave to me a long-term care policy, a sound investment strategy, a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies.

On the twelfth day of Christmas my true love gave to me, a pledge to be mortgage free, a long-term care policy, a sound investment strategy, a pay-down on my student loans, a 529 for my kids, insurance for disabilities, full estate planning, a Roth IRA, a pay-down on my visa, a maxed out retirement, a budget for expenses and a fund for emergencies.

Merry Christmas everyone!

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