OPINION

Stock Market Insights: Retirement Wisdom

By Dr. Richard L. Baker, AIF
Executive Vice President/Wealth Advisor

I manage investments but in reality, I am helping people with retirement. I have learned a thing or two about retirement.

Here are seven pieces of wisdom I have been thinking about lately as I work with my clients.

7. Work hard and save. When Solomon says in Proverbs 6:11 that poverty comes to the lazy like a “robber” and a “bandit,” he doesn’t mean quick like an ambush, but rather, that poverty will follow and harass the lazy at every turn, trying to take away what little the lazy still have. For those of you not yet retired, work hard and save much.

6. Limit your debt. Debt is like the big parachute that slows down a dragster; except, in this case, it is slowing down your retirement savings. Just because you can afford payments doesn’t mean you need it. Debt is the greatest hindrance to retirees.

5. Less debt gives you more peace. Live below what you make and you will sleep better at night. The more you live below your income the freer you will be.

4. Have a plan. Plan how you use your money now and in retirement. If you know where you're going you will have a better chance of getting there.

3. Hire help. If you don’t have a skill with investments, time, and the desire to continually monitor your retirement plan, then have someone help you. Good investment help will make up for the fees you pay. Don’t be cheap with something so important.

2. Leave your 401k alone. Don't touch it. Seriously, DO NOT TOUCH your retirement nest egg before you actually retire. Don't cash it out and don't borrow against it. If you can’t afford whatever you are trying to buy and this is the last resort then you don’t need it. Unless your house burns down, leave it alone. You will be thankful that you did.

1. Save more money. I suggest workers save 15% of their salary into their retirement plan. If you can’t afford 15% out of your check right now then do what you can and increase it by one percent each year until you get it up to 15%. It's money, not perishable fruit. Save some for later. It'll keep.

Money is hard to manage and even harder to make. I know you are stressed out but start thinking about how your retirement is going to go. Make good decisions now so your retirement goes well. You can do this.

Have a blessed week!

All investment and financial opinions expressed are intended as educational material. Although best efforts are made to ensure the information is accurate and up-to-date, occasionally unintended errors and misprints may occur.

Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., 7th Floor, Overland Park, KS 66211. PCIA doing business as Prime Capital Wealth Management ("PCWM") and Qualified Plan Advisors (“QPA”). Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. PCIA and Private Client Services are separate entities and are not affiliated. Dr. Baker has attained his D.Min., the designation for Doctor of Ministry, and his AIF®, the designation for Accredited Investment Fiduciary.