Planning Briefs

There are many things a young person may be able to do to achieve great financial success despite today's challenging job opportunity and difficult credit markets. Creative planning, hard work, perseverance, the ability to think, and yes, luck, all can help you to make it big. However, there are three mistakes you can make that will doom your future. Here they are:

1. Failure to save all that you can. Starting with your very first job or business opportunity, save every cent that you can. Put yourself on a pinch-penny budget and stay there for years and years. Invest the maximum in any and all retirement plans that are available to you. (At a minimum, use the company match). And – equally important – avoid high-interest debt like the plague. Don't buy new cars every year or so. Don't buy more house than you need.
2. Failure to keep working as long as possible. Do not – repeat, do not – retire at age 62. You may think that Social Security benefits will not play a big role in financing your retirement. Think again. Every dollar is going to count. Plus, by not retiring too soon you will continue to save more, and more.
3. Failure to seek financial advice. Select a trusted financial advisor early in your career and stick with him or her for guidance over your working life.