It's time to prepare for retirement

My parents did an excellent job guiding my brother and me as we prepared for retirement. Even in our early 20s, we frequently discussed retirement plans, which raised eyebrows among our friends. They found it unusual for young adults to be thinking so far ahead.

Interestingly, now in our early 50s, some of those friends who once thought our discussions were peculiar probably wish they had joined in. My brother and I are well-prepared for enjoyable retirements, while many of our peers are entering retirement with only social security income.

Our parents instilled in us the importance of not relying solely on social security. They emphasized that depending on it means letting the government dictate when you retire, typically at 67 for the maximum payout. While you can retire at 62, the payout is significantly lower. For those relying solely on social security without additional retirement planning, waiting until at least 67 might be the only option, if retirement is feasible at all.

I faced a unique challenge in my 20s due to severe asthma, which led me to pursue a college education. Deciding on a career path took time, and I landed a full-time job at 30, delaying my start in retirement investments. Although I contributed to social security before then, my ultimate goal was to avoid relying on it for retirement.

My younger brother, David, retired at 52, a year ahead of me. His early start, including three years in the military and 25 years in the Michigan prison system, allowed him to retire a decade before me. It's a testament to the impact of starting early on the road to retirement.

Thanks to my parents' encouragement, I began planning for retirement as soon as I landed a full-time job. With a five percent match from my employer, I started contributing 5% of my income to my retirement fund. As my financial situation improved, I increased this to 15%. Now, 26 years later, the combination of my contributions and the employer match has resulted in a substantial retirement fund.

However, over the years, changes in company ownership led to different retirement accounts. I had an active 403B and another mysterious account. At 48, I decided to take control and enlisted the help of a financial advisor in 2018, a decision that turned out to be one of the best in my life.

My financial advisor uncovered that one of my accounts was sitting in a bank earning a mere 2% interest. He swiftly moved that money, creating a new retirement account with his company. Today, the returns on my invested money have surged by 10%.

With my advisor's guidance, I now have a clear picture of my retirement prospects. He presented a graph indicating that I should comfortably retire at 65. In 2018, my initial goal was to retire at 58, mirroring my dad and grandpa's timeline. However, considering they started planning at 20 (much like my brother would), while I began at 30, I believe I'm in a solid position.

He assured me that, at that point, I could anticipate a monthly income slightly lower than my current earnings, ensuring a comfortable lifestyle in retirement. He mentioned that I would have enough money to live comfortably until I was 90 years old. This suits me well, considering both my grandmothers lived until 86. I did have an uncle who lived to 92, so I think I'm in a good spot. Witnessing the positive impact of proactive financial planning is truly reassuring.

My financial advisor mentioned that I'm in a better position than most of his clients. I lead a simple life, not indulging in extravagant purchases or the need for luxurious items. I live within my means and find happiness in the simplicity of everyday life. Unlike some coworkers who take on extra jobs to fund lavish vacations or splurge on high-end furniture, I'm content with a more humble lifestyle.

Of course, it's not to say I wouldn't enjoy some upgrades if I could. A warm vacation spot in the winter or a trip to Vegas sounds appealing. I might fancy a $2000 couch, but the reality is I find great deals on furniture through the Facebook marketplace or thrift shops. Much of my furniture is hand-me-downs from friends upgrading, including that $2000 couch I didn't have to buy.

I share this to encourage you to think about retirement now. Waiting until your 50s might be tempting, but it's not the ideal approach. You don't have to broadcast your plans to friends, and it doesn't require an excessive amount of time or energy. Start contributing as much as you can to your retirement—5% is a good start, especially if your company matches. It's essentially free money.

When you reach a point where you can afford it, consult a financial advisor. Surprisingly, many don't charge for the initial visit. Taking this step could put you far ahead of your peers in preparing for retirement. his clients. I do not live an extravagant life, I don't need to spend a lot of money on luxury items for my house -- meaning I am good with my money. I live within my means. And I am happy. I love life. I do not need to work an extra job just so I can go on vacations, which some of my coworkers do. They need to go on these vacations, or buy the best furniture for their homes, in order to get happy. And here I live humbly, I live a simple life, and I am happy every day.

Sure, that's not to say I wouldn't live a better life if I could. I 'd love to go to someplace warm in the winter months. I 'd love to go to Vegas. I'd love to pay $2000 for the best couch. But, be it as it is, I do not need to do that. I forgot vacations and buy my furniture in the Facebook market place or in thrift shops. Heck, much of my furniture are things my friends were going to toss out as they were upgrading to new furniture, such as the $2000 couch I did not buy for my house.

My point by writing this is to encourage you to think about retirement NOW. Do not wait until you are in your 50's to start preparing. You don't need to tell your friends you are doing it, if you do not want to. In fact, you do not even need to spend a lot of time and energy doing it. But, at the very least, put as much as you can into your retirement. If you can only do 5%, do that. But, if your company matches, that's free money. Make sure you put in as much money into your retirement that your company matches. And don't need to do much more than that. You will be in a good spot for retirement.

And, when you get to a financial point you can afford it, increase your retirement contribution to 15%, or even higher if you can. And go see a financial advisor and start a Roth IRA. It might surprise you that they do not charge you for a visit. Visiting a financial advisor is absolutely free. See one, and you will be far ahead of your peers when it comes to retirement. And it will ease your mind, as your retirement will be in good hands.