3 Expert-Approved Tips To Use For Retirement Planning
I don't know about you but I was real clueless when I got into the workforce and was asked if I wanted to contribute to a 401K.
Before making a decision, I had a little conversation with myself in my head that went a little something like this:
"What the heck is a 401K?"
"That sounds real shady."
"It's gonna be coming out of my paycheck? Nah, I need ALL of my hard earned coins!"
"Well I guess I should sign up for it because they say they're gonna match me. What's the worst that can possibly happen here?"
I know I'm not the only one who has had a similar convo with themselves. I wasn't even thinking about no retirement, I was fresh out of school and simply trying to gain some real life experience and look fly while doing so. I was focused on what was going on in my world that day, that week, that month.
Nah, 30 to 40 years down the line didn't exist to me.
I ultimately ended up putting a good chunk of money into my 401K while at my first job, but when hard times hit a few years later, I was up against a wall and had no choice but to pull all of my money out. There I was with no savings, just like that. I didn't know any better though. Fast forward a few years, I started learning more and more about retirement planning and the different types of Individual Retirement Accounts (IRAs) and having real life conversations with my peers about it.
Shamese CampbellThe General Ledger Group
When I heard Shamese Campbell of The General Ledger Group tell her story, it struck a chord in me. Imagine making millions and millions of dollars as a boss babe business owner, traveling all around the world, and living the high life for years and years, but now being in retirement age with absolutely nothing to show for it.
This is Campbell's 82-year-old grandmother's reality. When business was booming, she was so focused on the "here and now" that she didn't think to plan for retirement. "We don't think about these things when we're young," Campbell said.
In the age of boss babes and Girl CEOs everywhere, it's especially important to ensure that the money you're bringing in while hustling has an assignment. "Everyone's always so focused on securing the bag that they're not even thinking about managing it and putting it aside for the future," she continued.
When you work for yourself, you have to make sure that you don't lose sight of retirement planning. Just because you may not have access to an employer sponsored 401K plan, doesn't mean that you can't contribute. You can take advantage of an IRA and set it up to where you're contributing the maximum amount each year ($5,500) so that you can earn more on your investment. This will allow you to ensure that you're gonna actually be able to enjoy the fruits of your labor over the years once you're ready to throw in the towel.
There's two common types of IRAs: Traditional and Roth. The difference between the two is that with a Traditional IRA, you're getting a slight tax break because you're putting pre-tax dollars into it. When it's time to withdraw, you'll get taxed on it. With a Roth IRA, it allows you to invest with after-tax dollars so that when it's time to pull from it, it's completely tax free. The unfortunate truth is this though: retirement seems so far away for so many millennials and, as a result, they are either not saving at all for it or not saving enough.
The General Ledger Group
It's a foreign concept for those who were never educated on the importance of retirement planning.
The whole point of retiring is so that you won't have to work anymore. Campbell says that, "If you have to get a job after retirement, then you've done something wrong along the way."
That's why we see so many older people working jobs these days. Not because they necessarily want to, but because they have to in order to survive. Think about it: do you want to be standing in front of a Wal-Mart greeting people when you're 70 years old? If your answer is "no," then it's time to really shift your mindset and start thinking about and planning for your FUTURE SELF.
Wherever you are in your workforce journey, it's never too late to start pouring into your future. Here's a few ways that you can ensure a happy and thriving retirement for yourself.
Make it a priority.
It's sad to see how we work every single day for so many years and end up broke, busted, and disgusted at the end of it all. That's because we're so conditioned to go to work in order to pay bills. Campbell says that you should be making it a priority to pay yourself first before doing anything else. Regardless of how much you're putting in, it's imperative to be contributing something. Start small if necessary and increase your contributions over time. You also gotta make sure that you're disciplined enough to not pull from it like I did when things got a bit rough.
Know where you are to know where you're going.
A lot of times, people don't know how much it truly costs to live the life that they live or even how to calculate their financial independence number. You have to have an idea of how much money you even need in order to retire comfortably and maintain your standard of living or better. Additionally, you have to take into account inflation over the years. Ask yourself this: With how much you're contributing currently, is your future self gonna be good or nah?
Sit down with someone.
Regardless of whether you're an entrepreneur or work a traditional 9-5, you should be sitting down with a professional to discuss your options and create a plan that will allow you to live the life you desire after retirement. You should also meet with them multiple times over the years to make changes to your contributions as needed. You do not need to figure it all out on your own, that's why there are qualified people who are willing and ready to help you get the most bang for your buck.
Campbell says that you should be planning for the future so that the future can take care of you. If you're not looking out for you, then who will? Make yourself a priority and do what's necessary TODAY so that you can live your best life TOMORROW.
Featured image courtesy of The General Ledger Group
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Kristin Sutton (aka the Money Therapist) is a personal finance and lifestyle blogger/coach over at DebtFreeBlackGirl.com that empowers young women to take control of their finances by changing the way they think about money. As a licensed therapist, her daily mission is to uncover and eliminate the mental roadblocks that hinder people from living the life of their dreams. You can find her on all things social: @DebtFreeBlkGrl
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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ItGirl In Motion: DonYé Taylor Asked Herself This Question When Creating Her Brainchild
"Being an 'ItGirl' is all about being yourself and taking all of the elements that make you who you are and displaying them at your highest capability," creative brainiac DonYé Taylor says in the introduction of the limited video series, "ItGirl In Motion."
In partnership with Hyundai, xoNecole has unveiled the limited series in conjunction with our inaugural ItGirl 100 list. The list boasts 100 Black women who not only innovate and take up space when it comes to putting on for their cities, but also as the driving force behind brands that create impact for the culture. ItGirl DonYé Taylor is one of the 100 featured ladies who put her purpose into action.
ITGIRL IN MOTION with DONYE TAYLORwww.youtube.com
As a marketing consultant, content creator, and CEO, a driving force behind DonYé's ambitions has been to show others how she sees the world by "creating art and doing things that shift perspective." In founding her brainchild, Nüclei, which is coincidentally also home to the ever-so-chic chrome brain piggybank, DonYé briefly touched on the inspiration behind the brand. "I was like, 'What would it look like if I were to be of service to myself?' And that's what made me create Nuclei," she said.
Watch the video above to take a peek into the life of the LA-based ItGirl, the importance of Black women receiving our "flowers" while we're here, and the three things she believes are absolutely essential to any ItGirl.
See our ItGirl 100 list in full here. Click through the gallery below for some BTS moments of DonYé and our partnership with Hyundai.
CREDITS
Director: Mikkoh @mikkoh
Production Company: @30inthemorning
AD/Gimbal Op: @jeffreyrattanong
DP: @jucelandrin_
Editor: @30inthemorning
1st AC: Bonnie Delgado @bonniebellevue
2nd AC: Liz Robles @lizfatimarobles
FPV Drone Op: Kai Kevin Goh @kaivertigoh
Gaffer: Nelson Nguyen @nelson_ftw
Key Grip: Ames Hoang @mangothemaker
SLT: Jamon Tolbert @jamon.tolbert
Sound Mixer: Deyo Forteza @introducingdeyo
PA: Breyona Holt @exquisite_eye
PA: Aminah Muhammad @aminahmuhamm
BTS: Marika Belamarich @marikarosegold
Featured image by Marika Belamarich for xoNecole