A few weeks ago, nonprofit job hired me full-time. Since I did VISTA after college and worked part-time this past year, this is the first “real” job that I’ve ever had with full benefits. Part of those benefits include a retirement plan. Tonight, I sat down to figure out all the fun deductions and monthly budget since my paperwork is due tomorrow. 

I’m not great with finances. I’m good at balancing my checkbook and paying my bills, but budgeting and saving are not my forte. However, I have been given good counsel. The parents always tried to model good financial decisions, plus I went through a Crown Financial Bible Study last year. Also factor in years and years of listening to Larry Burkett’s Money Matterson WMBW when Maven Mom picked me up from Berean. I should be capable of making smart decisions.

The guide book, however, cracked me up and listed 5 simple steps for planning for retirement.

Step 1: Assess your needs–Determine how much you need at retirement, how much you need to save monthly to reach that goal, and identify where you’re likely to get that money.

Let’s see. I’m 25, about to finish grad school, only a few years into my career, unmarried and renting an apartment. If I retire at 65, that means I’m working for the next FORTY years. I have a slight feeling that my current circumstances are likely to change, and the amount that I need to retire is a bit hard to deduce. But I need an amount. Therefore, I’ll going to go on the safe side, and say $1 million.

Step 2: Review your Investment Options–Understand what is available to you and how these options can help you reach your goal.

This retirement fund is my investment option. Can I factor in potential rich husbands? Trust funds are an easy way to get to $1 million.

Step 3: Determine your Investor Profile–Using the Risk Tolerance Questionnaire, determine the level of risk you are willing to accept. this will guide ou to appropriate investment selections.

This is straightforward. Since I’m young and will be working for the next four decades, I can take higher risks. Higher risks overall will help me get to $1 million.

Step 4: Develop a Plan–Understand the basics of investing and having a proper asset allocation strategy is one of the best ways to improve your chances of reaching your retirement goals.

Say what? I need Snowbird to translate this for me. Gold digging seems like an easier plan. It’s worked for several of my readers…

Step 5: Implement Your Plan and Stay on Course–Enroll today and get started on your path to a comfortable retirement.

Putting this in terms that I can grasp–if I put aside an amount each month that’s roughly equal to a good pair of shoes, I’ll be able to buy more shoes (and handbags) when I retire. It’s the Carrie Bradshaw formula for investing.

This entry was posted on Tuesday, June 19th, 2007 at 3:01 am and is filed under nonprofit job, DC adventures, randomness. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.