Ahhh Wishing…….

Maybe because I grew up just post WWII where money, food, actually just about everything was hard to come by, or maybe it was because I was one of 7 children growing up (or a combination of all), I learned early on to ‘make do with what we had’, never, never, never waste anything, if we were done with an item and it still had ‘life’ in it, pass it on to someone who could squeeze the life out of it. And, share.  All these things were good lessons, wise and used by all (or most) around me. Second hand clothes, shoes, and everything else was perfect for us. And we may not have known where it had come from, but we were sure either Ma or Dad had been very thankful as were we, because it was ‘new to us’.

Maybe all that is reason enough to know I was very good at saving money when I earned it. When I earned any money, one half of it went directly onto Ma’s bureau as my ‘room and board’, and to be put to bills. The other half I could keep, and had to use it wisely as I’d now be purchasing my clothing, bus fare, or anything else I needed.

Dad was the one who taught me how to use a credit card…..with only a few sentences…..’if you use it, have the cash ready and waiting when the bill comes in’…..and I’ve followed this rule all my life, and so, I’ve never, not once have I ever paid a late fee or finance charge in the decades since. These things … all good.

However, although I did save, and save something from every dollar I earned (I paid myself first), I wish I had put that hard earned savings into better ‘vehicles’ for the long haul to retirement.

I allowed a financial adviser talk me into putting the bulk of savings into an annuity. At the time, the interest rate was 3%, which was a bit better than a CD at a bank…… and so……. 20 years later, it is still getting that same 3% because I couldn’t take it out (there are rules), and now that I can, but am still limited to a 10% withdrawal or pay a penalty if more than that, I also have to pay taxes on everything I do take out……. This basically dwindles down the total amount I see when they send my my quarterly or annual statement.

Had I put my money into a Roth IRA, I would have paid taxes at the time when I was working and it would have been taxed on my income level, but when I wanted to take any (or all) out now) there would be no taxes to pay on it because it would have grown all those years tax free.

And so, there is nothing I can do for my benefit now, but what I want to do instead is to tell you… If you are working, you are allowed to put $6,000.00 per year into a Roth IRA tax free account, which will compound and grow.

Yes, this is only $6,000.00, but if you’re able to do more, there are other ‘retirement vehicles’ out there….. just run the other way if someone mentions an annuity.

These annuities are ‘sold’ by insurance companies, through some financial ‘advisers’, who all get a large commission chunk from you for opening up the annuity account.

If you are hiring a Financial Adviser, get a Fiduciary Financial Adviser….. one who is legally bound to act with your best interest at heart.  So, always ask…… “Are you a Fiduciary?”….. if he/she says ‘no’, then run the other way.