Celebrating The Fourth of July and Your Financial Independence
*Please note that this blog posting is a slightly modified version of a blog entry originally posted 7/31/2009. We call our re-posted blog program Second Chance: Blog Posts Worth Re-reading, and we only include our favorite blog posts.
Around each holiday, I try to remind myself of the true significance of the celebration, since tradition often shrouds the actual meaning. This time of year it’s easy to get caught up in the barbeques, parades and fireworks, while overlooking an event that took place 234 years ago. On July 4, 1776, the Second Continental Congress approved the Declaration of Independence, marking the official break from British rule and the birth of the United States of America. The events of July 4, 1776, were the culmination of years of careful planning and sacrifices.
Like American independence, a successful retirement will be the culmination of careful planning and sacrifice. Most Americans dream of, one day, being comfortable with the amount of money we have: we want financial independence. Like the American independence movement, there probably won’t be a single event that causes you to start your financial independence movement. Luckily, whenever you decide to start, you can start quickly and easily. The first step can be as simple as deciding to participate in your 401(k) plan at work or beginning an emergency fund.
Just as the colonies faced obstacles along the way, most investors will experience unplanned events that will make periodic adjustments a necessity. For example, if your employer cuts or reduces your company match, you might need to increase your contribution rate in order to maintain your retirement strategy. Or perhaps you will need to drain most of your emergency fund to repair your roof. Setbacks feel unexpected and demoralizing, but you can remain flexible by understanding that you will face surprises and building a financial cushion in anticipation. With planning, you can get through most setbacks without a major impact to your long-term goals.
No matter where you are on the path to retirement, making progress toward your retirement goals will give you satisfaction and confidence. And it’s never too late to formulate your strategy. A resource that I’d suggest is our Education Center; you’ll find useful tips for investors in all stages of life.
The efforts the revolutionaries made to lay the foundation for this country were worth the sacrifices they made. So the when you watch the fireworks or have that Fourth of July barbeque this year, remember the steps you can take toward celebrating your financial independence: careful planning, the ability to make adjustments, a willingness to make tough decisions and the occasional sacrifice for the future.
Have a great Fourth of July!
Originally posted by Kevin Jaegers, Senior Investment Adviser
Edited and updated by Carolyn Humpherson, Financial Communications Specialist
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Smart401k is a Web-based investment adviser providing unbiased advice to help employees invest in their employer-sponsored retirement plans. Smart401k provides service to almost 11,000 clients who collectively have more than $1.5 billion in assets. Individuals receive personalized investment recommendations based on the funds in their plan and support of professional investment advisers available to answer all investment questions. Based in Overland Park, KS, Smart401k can be found at Smart401k.com.
