One Minute Matters:

Your 1-2 minute source for basic finance food for thought

Pursue Every Angle

 

December 7, 2020

Hello and welcome to One Minute Matters.

Today I want to talk about my favorite financial resource: The Bible. I particularly like the Parable of the Shrewd Manager found in Luke 16:1-18. You can read it yourself. I suggest The Message translation.

Regarding our money it is common to complacently get by on good behavior, when we should seek to pursue every angle, honestly and ethically.

Overpaying your taxes each year and getting a big refund at tax time is a common complacency. There is a better way to pay your taxes, maintain discipline, and still get that influx of cash once a year.

Refusing to take on any debt whatsoever because “Debt is dumb?” is another example. Debt is often dumb when you have no money, however, with a strong financial foundation, debt can be used to build wealth.

Many are savings 5 or 10 percent into retirement accounts because a guru, book, or website told them too. Yet it is important to look at your plan in a deeper, more personal way, regularly, with a 3rd party professional.

Middle class America is full of people complacently getting by on good behavior. When asked about their personal finances many respond, “I’m good.” The truth is they often are doing okay, yet they could be doing so much better by simply adding a little honest and ethical creativity and professional guidance.

How Much Should I Save For Retirement?

December 14, 2020

Hello and welcome to One Minute Matters I am Kyle Grevengoed and today I am talking about finding your magic number to save for retirement!

Individuals get frustrated that financial advisors seem to dodge this question. Trust me financial advisors want to answer this question. You must understand that the idea that there is one magic number to save for retirement is false. Everyone’s number is different and it changes annually.

Some hear this and think, “Well then I mind as well wait until I know more about my future.” This would be a mistake. While your magic number may change annually, the longer you wait to find your magic number, the higher it will be.

When you are young your future, and especially your retirement, is less clear. As you grow older your future becomes more clear. Thus you make a plan and find your magic number when you are young. Then you meet with your financial advisor at least 1-2 times a year in order to discuss and revisit your magic number.

There will be years where the number stays the same. There will be other years your number changes significantly. Whatever happens, do not make the mistake of forgoing this important discussion because, “everything is still the same.” The whole idea of meeting annually is to catch changes while they are still small, rather than letting small changes pile up year after year.

You have a magic number. Your number is different than your neighbors. Your number may change annually. Revisit with your financial advisor regularly to adjust for the small, or perhaps large, changes regularly.