Smart401k Blog

Around each holiday, I try to remind myself of the true significance of that day, as tradition often shrouds the actual meaning.  For example, this time of year, it’s easy to get caught up in the BBQ’s, parades and fireworks, while overlooking an event that took place 233 years ago.  On July 4^th, 1776, the Second Continental Congress approved the Declaration of Independence, marking the birth date of the United States of America and break from British rule.  This day signifies the culmination of years of careful planning and sacrifices to get to that point.

The same is true of your endeavor towards retirement.  Most of us have a dream of one day being comfortable with the amount of money we have, or in other words, having financial independence.  And like the Independence movement there probably won’t be a single event that causes you to start your financial independence movement.   Luckily, whenever you do decide to start you can start quickly and easily.  For instance, the first step can be as simple as deciding to take part in your 401(k) plan at work, or beginning an emergency fund.    

Unfortunately, just as the colonies faced persistent opposition and other obstacles along the way, most investors will experience unplanned events that will make some adjustments necessary.  For example, if your employer cuts or reduces the company match, you may have to increase your contribution rate in order to maintain your retirement strategy.  Or perhaps you have to drain most of your emergency fund to repair your roof.  Setbacks such as this can often be unexpected and demoralizing, however, if you anticipate them and remain flexible, you can get through them without a major impact to your long-term goals.

No matter where you are on the path to retirement, making progression to your retirement goals will give you both satisfaction and confidence to continue. And, it’s never too late to formulate your strategy on how you are going to get there.  A good resource that I’d suggest is our Smart Savings Series; you’ll find useful tips for investors in all stages of life.

I think we all recognize that the efforts the revolutionaries took to lay the foundation for this country were worth the sacrifices they made.  So, the next time you see fireworks or have that 4^th of July BBQ, remember that with some careful planning, an ability to make adjustments as needed and willingness to make some tough decisions, you’ll be able to celebrate your own financial independence.

Have a great 4^th of July,

Kevin Jaegers, Senior Investment Advisor

This entry was posted on Wednesday, July 1st, 2009 at 5:33 pm and is filed under Adviser Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.