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RETIREMENT PLANNING Planning successfully for your retirement should begin at your birth.... at age "ZERO" !! A tablet from the on-going INTERNET BOOK, "The Doctor's Terrific Tablets" ( http://www.terrific-tabs.com ) by John N. Todd III, M. D. (link, about the author of this website)
SEE related topics, on this website: Why "the poor" are poor; how "the rich" become rich (link) INHERITANCE, a potentially harmful legacy (link) And: A Todd Chart -- showing compounded growth of invested money (link) Initiated 12/3/05; supplemented and "doctored": 2/2/06; 2/10/06; 2/11/06; 2/12/06; 2/13/06; 2/14/06; 2/15/06; 3/10/06; 4/9/06; 1/3/07 CLICK HERE to go to the "FRONT PAGE" of "The Doctor's Terrific Tablets" CLICK HERE for ALPHABETICAL INDEX of this entire WEBSITE CLICK HERE to EMAIL your thoughts to the author The planning for the successful "retirement" of an individual should begin at his birth.... that is, at "age zero". Obviously, the first several years of "retirement planning" are clearly in the hands of the dedicated and intelligent parents of an individual. During those first 18 to 22 years of a youngster's life, the planning for retirement consists mainly of the parents' observation and development and oversight of the teaching and schooling and discipline and habits and "learning-curve" of the young mind..... the "young mind", which must be thoughtfully and diligently and persistently and firmly encouraged.... the "young mind", which must be guided to "evolve" progressively, into a mature adult mental understanding, and emotional self-control. If the parents fail in their responsibilities, then the hope of successful financial achievement, and the subsequent financial well-being and "retirement" of their children, is markedly restricted, and postponed. The precise age of achievement of mature adult comprehension in a young person obviously varies greatly, depending on a number of factors.... starting with the genetic and biologic and cultural and educational characteristics of the parents.... those parental "factors" that are unavoidably (and inevitably and inextricably) imposed upon their offsprings. Beyond that, the young individual's basic intelligence (intellectual capacity [link]) comes into play.... and then, many other factors, such as loving homelife, parental insistence and perseverance.... guidance, oversight, sobriety, and encouragement by mother and (hopefully) father; then, the personal psychological traits of the youngster.... and then schooling, and environment, and "culture", and race; social and financial position; physical appearance, health; and on-and-on. In today's society, when the subject of "retirment-planning" is discussed, the target-audience is almost always dominated by individuals who are well past the age at which planning for retirement should have begun. Obviously , successful retirement-planning must begin, when you're born ! ! ! The purpose of this document is to review the obvious.... and to list and discuss several points which are frequently overlooked in the plan for an individual's financial success and subsequent "retirement". I will emphasize the critical importance of "endurance" and perseverance.... in one's pursuit of financial success, and "retirement planning". (And so, having begun this composition, with the remarks above, I will subsequently develop my thoughts, using the outline indicated below. The completion of this essay may be slow in developing.) But first, here, below, is my "home-made" chart (a "ToddChart") showing the "magical power" of compounded (re-invested) interest. The chart will be extended (expanded), later. The following financial "growth" chart shows the number of years of contribution to an investment plan; at 10% return per year; on an annual contribution of $4000; and (in column 3) the cumulative value of the investment plan; and (in column 4) the cumulative gains above the total contributions; and the dollar-gain each year (column 5), from the previous year.... indicating a rapidly increasing annual yield. The last column (column 6) shows the annual ($4000) contribution, minus that year's gain.... indicating a (theoretical) progressive decrease in the "cost" of the $4,000 contribution. (After the 8th year, as the chart shows, the investor generates progressively more and more dollars, above his $4,000 annual contribution.) (The example showing a 10% annual return can be obtained, for instance, by postulating a 7% annual gain in the value of a common-stock, plus a 3% dividend.... which must be regularly re-invested in the stock. Obviously, there are various other ways to "compound" the yield of an investment.)
Notice what happens to your gain, and to your relative cost, every year, as you add another annual $4,000 contribution. This chart will be continued, later, out to 20 years.... or more. The "extrapolation" of my thoughts on this "retirement" subject will include the following important considerations: Remember spiritual awareness and development among your "investments". "Seek not; find not". Compounding of financial assets. See chart. Emphasize investments in tax-deferred plans, like IRA's (regular or Roth).... and other plans. Avoid "raiding" your savings, investments, IRA, etc. (You can't make-up for lost time, and for interrupted compounding). Patience, and perseverance. Avoid getting in-an-out of financial markets, unless you've got a lotta savvy, and a lotta money. Try to "self-direct" your investments. "No one cares about your money.... like you care." All investment-services and mutual funds (logically) "serve" their own financial interests..... before yours. Don't count on "the government", or your employer, or your pension-plan, or your parents, or your inheritance (link).... to support you, or to make your "retirement" successful. Include "real estate" among your investment plans.... if at all financially possible. Emphasize your appearance, dress, grooming, health, habits, smile, personality; and perseverance.... in your seeking of financial success. "Dress for the job you want.... not for the job you have." Education; speech and speaking, the importance of writing (composition); grammer and vocabulary. (See link Ebonics and Albonics). Developing a specialty ... a special skill or talent that not-many-others have. Don't depend on someone else to save and invest for you. (TCOY-NEC -- an acronym for "Take care of yourself -- nobody else can".) Work extra hours; learn different jobs. If you're not going to save and invest, then marry rich; or hope your rich parents will die early, and include you in their estate. Or, throw your money away on the fool's folly of gambling, and the futile hope of winning a lottery. Discipline yourself. If you discipline yourself in one area, it is likely that you will discipline yourself in other areas. Persevere. Saving, investing, compounding. Start early.... the power of "compounding" increases dramatically, especially after 20 years. Don't wait 'til you're 40 or 50 years-old, before you start considering your "retirement. Satisfy your employer: "Be there on time; do more than your share of the work"; etc. Protect your health: Exercise; include calisthenics, and vigorous outdoor planned exercise; exposure to outside light. Exercise is good-for the "brain".... and beneficial to one's "outlook", attitude, and psychological "make-up". Avoid stupid medications: diet pills, sleeping pills; nose-drops; diuretics, anti-histamines; and other over-the-counter- medications Maintain proper weight, and diet. See link Diet and Weight-Control Avoid tobacco of all types; avoid alcohol in any form. (See link Alcohol and Alcoholism.) Become a "tee-totaler". Quotations about WORK.... Kingsley, Voltaire, Bible. Avoid debt; pay-off your credit-card debt.... each month. Pay-as-you-go. (See link Why are "the poor" poor; How did "the rich" become rich?) Avoid senseless and stupid gambling..... the "fool's folly". Axioms: "A fool and his money soon part".... an old and true axiom. And, the real golden rule: "If you've got the gold.... you make the rules." Grow up. Avoid the Omar Khayyam concept "Why worry about tomorrow if today be sweet." AND.... other thoughts will be included and expanded, as time passes. |
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