Comfort
As this week’s blogs focus on ‘The Human Element’ of successful investing, we thought an appropriate place to start was one we all long for…comfort.
Comfort as defined in most dictionaries refers to: ‘a state of ease and satisfaction, with freedom from pain and anxiety’. The vast majority of people will gravitate to comfort and find it in almost every area of their life…except one. Think about it for a minute: People have their comfy shoes, jeans, chair, food, music, circle of friends, place to sit in church, etc. When you ask someone about any of these known comforts, you can almost see a look of contentment on their faces as they mentally relate to that specific comfort. It makes them feel at ease and satisfied, and free from any pain and anxiety.
But ask someone about that one area of exception and that look of contentment on their face changes almost instantly to one of anxiety, fear, and/or pain. What is this one area that most people DO NOT have a comfort with? Saving adequately for retirement. After all, saving for retirement must cover all the following:
- Costs of normal living expenses
- Health-care costs (including the possibility of assisted-living)
- Taxes
- Life-span longevity
- Monies for your kids, charity, or endowment
The challenge for Gen-X and Y investors today is having the discipline and commitment to set proper priorities and stick with them. If they choose to ignore this concept, they’ll end up in a similar situation that Baby-boomers are finding themselves in now; ill-prepared for retirement and living without any level of comfort (only anxiety and the pain of past mistakes).
So here’s The S.E.I Tip of the Week for Gen-X and Y Investors:
- Start saving with your first job
- Create a plan for your future by calculating what you should be saving now
- Prioritize to pay yourself first and don’t procrastinate
Comfort will be a natural by-product for those that make timely and adequate savings their number one priority.