Mid-terms are over – When Can I Retire?

The uncertainties of the mid-terms are over and it would appear investors are feeling a degree of relief as stocks soared on Wednesday. (This isn’t that surprising, as the stock market generally sees positive returns in the months following midterm elections). The gridlock that will surely follow these elections most likely means that little will change. The pro-business policies of the Trump administration will likely survive for at least the next two years, which should be good for the economy as a whole.

Now we can all get back to focusing on more pressing matters. Whether you are in your 40s, 50s or 60s preparing for retirement is often a top concern, so you need to put the worry and uncertainty of recent events aside and move in a positive direction. Think of it this way, God has not been surprised by the election results. The many Biblical principles on how to handle money can provide guidance and help secure the future.

“The plans of the diligent lead to profit as surely as haste leads to poverty.” PROVERBS 21:5

Everyone should be able to retire at some point without worry. How do you know if you have enough? Well, for most people who live in Southern California you’ll want to invest enough so that when you retire you have about 11 times your current salary available to supplement social security. Your specific circumstances may require more or less, but this is a good number to start with.

How can you get enough?

If you aren’t already, start now by managing your expenses so that you can put at least 10% of your salary into a well-diversified retirement account invested for growth. For business owners that might mean a SEP-IRA or Cash Balance Pension Plan. If you are an employee maximize contributions to your company’s 401(k) plan. If you are starting late you might need to put away 15%, 20% or more to accumulate enough.

For most of us, and the stock market, the uncertainty hasn’t gone away, but the key is to focus on that which you can control. Spend less than you earn, avoid debt, build reserves and think and plan long-term – these are timeless principles right out of the Bible that will help you secure your financial future.

Let us know if we can help.