OF
Well-Known Member
Great sign!
Those decades will pass faster than you think. As we age, each day is a progressively smaller fraction of our total experience. It can get going 'scary fast' if you don't have a plan.
The time to set up for retirement comes early in life. By way of advice, buy Life Insurance early when the rates are low. Even before you have a 'wife and family' to protect. Real insurance, not 'term', Whole Life or 65 Life or something that builds value. When the opportunity to buy my first house came along, I was able to cash in my modest savings, borrow all I could from my insurance (which you can do at low rates on a signature ('bad credit' not withstanding) and borrow what I could from friends and family for a down payment. Mortgage and impound (taxes and insurance) was almost 3 times the rent I was paying, I needed a room mate again (or rather house mate) at first. But 'rent' never went up. 10 years later it was a joke. Everyone I knew paid more for rent than I did for my house! I was no longer giving my hard earned money to a landlord (who in my case didn't even read English.....), but rather building equity of my own.
Why pay someone else, when you can pay yourself?
Then, while the interest part of the payment is high, and the principle low, pay extra principle (which cuts the loan time down a LOT). I paid that loan off in 16 not 28 years and suddenly went 'rent free' (only taxes and insurance). Think about that, what could you do with the money you're now spending on rent?
I never sold that house, rather used it as collateral on the one we live in now. A property management company gets $83/month ($1000 a year) to handle everything and sends me $1500 a month and has for some time now. This house is also paid off (a 'requirement' for retirement) so it's now very cheap to live in a nice house of my choice.
Once retired lots of other savings happen. I 'tank up' about once a month, not once a week. And no longer pay $15 or so a day for 'work lunches' with my workmates. Car insurance is less, too. I own the car, too, of course.
I retired almost on schedule, at 56 not 55 as I'd hoped, but plenty early. And with a secure and comfortable lifestyle (in the bag). Because I had a plan. Other plans work well for others, the idea is to invest in yourself as much as you can, not enriching others?
Sorry to rant, but it is Thanksgiving.......and boy am I thankful I got some good advice (buy Life Insurance early, even before you have a need for it) that eventually made my future secure. "Pay yourself first" is a good rule.
Remember what the Real Estate guys advise, "Get lots while you're young" (also a great sign.....). You don't really want to work until you drop dead. Make a plan and stick with it, you'll thank yourself I can assure you.
For your consideration. Thanks for listening.
Best Holiday wishes for you and yours. Life is sweet, and the blessings many.
OF
