Sushi Money

It’s a new day, a hopeful day, a day of change- and America moves forward again.  Regardless of anyone’s political views, it is heartwarming to see democracy in action in our free Republic, and to see the spirit and pride of millions of Americans on this day that President Obama takes office.

The older I am the more I appreciate the timelessness of all that I’ve been privileged to witness in my life, and that we see in America.  And I am proud that through all the challenge and chaos of our lives, we can find strength in the values upon which our nation was founded, and for which we stand together today.

So many people have bearish and near-catastrophic views of the nation and the economy that you would think the world was ending.  It very well may be, but not anytime soon.   The economy and recession in the late 70’s and early 80’s was far worse, and people didn’t seem to be as negative about it then.    The pendulum will swing, times will change- slowly- almost without recognition and we will come out of this just as we have before.  That’s my view, and it may be early, but if there’s one thing that life and the market teaches you, it’s patience. 

If you’re facing challenge and hardship, I wish you strength and opportunity- it will come, hang in there, and don’t give up.  And if you’re enjoying success and security from years of hard work, I wish for you peace and a chance to help others where you can.  

Where we are as a nation may seem a reflection of the immediate external economic realities we face each day.  But the nation is stronger and bigger than what we see each day.  We will move on, we will grow stronger, we will prosper and we will restore opportunity within America in the months and years ahead.  

“Out with the old, in with the new” as the saying goes.  Timely words for welcoming a new year that will hopefully be a far cry from last year, at least financially speaking.    For many of us the new year also means a new commitment to getting rid of debt and increasing savings.  In short, through circumstance or necessity, many of our priorities have changed.  

Jim Citrin looks at Getting Back to Basics in 2009, describing how changing priorities have affected business perspectives:

“The era of unchecked consumerism and financial excess had the insidious effect of devaluing everything. Why save money when you could borrow to get whatever you wanted? Why hang on to clothes and appliances when you could just go to the store and buy new ones? Why make structural improvements to your business operations or deepen customer relationships when you could push more stuff to get the growth that Wall Street demanded?”

“In one fell swoop, these attitudes have ground to a halt. They’ve been replaced by millions of healthier conversations in conference rooms and around kitchen tables about how to save, conserve, and prioritize.”

The article looks for a silver lining, examining how we can reconnect and make the best of the difficult times we live in.  I appreciate his views because it makes the simple point that we have a choice with how to respond to the current economic environment.  Sit around and wring our hands?  No. We need to get up and do something about our situation, and work to improve our lives and fortunes.

Admittedly the really tough part of the economic challenge we face is how far it has reached into people’s lives.  Between housing, the stock market and the credit crunch, the financial challenges have touched every level of the socio-economic spectrum.   For those who have lived too long on debt and excessive borrowing, the money faucet has been turned off.  Now they’re struggling to save, get by and get rid of that debt.  Others are struggling with layoffs and trying to find a job.  And even for those who saved and invested diligently through the years, the stock market’s downward spiral has demoralized investors into wondering why they ever invested in the first place.

A lot of frugal and industrious folks today are wondering if they should have just spent more of their money when they had it, instead of scrimping and saving through the years only to watch it disappear in a few months.

Most of all it’s just hard to feel confident about our choices right now.  And we’re shocked when reading about financial scandals and corruption.  It’s no surprise that many people have moved their assets to cash in CDs and savings accounts, deciding that something is better than nothing.   Nothing wrong with that, especially if you need the money in 3-5 years, or you are already retired and may need that money for healthcare or living expenses.   But the rate of return on those accounts is really low, and most planners will still target a growth or dividend component in the overall allocation mix if possible. 

Dividends are also king right now for investors, and there’s nothing like getting paid to hold a good company in stock.  Fixed income investments also may offer some of the best opportunities in the next few years.  Cash-wise I’m at least putting some money into a good quality high-yield savings account such as with ING, and money market accounts such as Vanguard Prime.  If you want treasuries (who doesn’t!?), Vanguard also has several treasury mutual funds.

And I’m certainly still investing in mutual funds and selective stocks, taking advantage of low prices and increasing savings and investments where I can afford it.  Is that a gamble?  Not for me, since I don’t plan to need the money for 10+ years.  If you feel like it’s gambling, then that should tell you something about your risk tolerance, and you should look for a more conservative asset mix. 

But if you’ve got decades until retirement, there’s no better time than right now to accumulate investment shares.  As long as your financial life is in order of course.  I call it my Big Three, and they remain the central focus of our financial lives:  Cut Spending, Pay down Debt, and Increase Savings.  After the first two are under control, then I think about investing.

If you’re feeling bad about your mutual fund losses, most of us can be glad we didn’t join the Dubious 60% Club, and that’s not 60% up…  Bill Miller was a high-flyer for about 15 years as a leading mutual fund manager, but for the past few years- well mostly last year- he has crashed and burned.   It just goes to show that anyone can make poor choices and lose money in the market.  Does that mean he’s sulking in some corner office, licking his wounds?  Absolutely not.  He’s still in their fighting and even managed to beat the S&P 500 for December 2008.   

As we ring in the new year, there’s a host of excellent pracitical advice out there.  Here’s a rundown on some of my favorites:

• The Wall Street Journal offers an eclectic mix of insight for How to Fix Your Life in 2009.  “Exuberance and excess have made way for prudence and pragmatism. Frugality is, once again, a virtue. To help you settle into this strange new world, our reporters have dug deep into their beats…”

• SmartMoney.com shows us 7 Ways to Save in 2009.   “Reducing monthly expenses and saving more money is the must-make resolution for 2009.”

• Kiplinger.com offers a classic article from a few years go reviewing 8 Keys to Financial Security. “Pay yourself first. Protect your loved ones. Borrow sparingly. And don’t go for the home run…”  What a great, timeless article.

• Laura Rowley takes an heady look at the psychology of Understanding Money Behavior in a Financial Crisis.  “One of the keys to surviving the economic crisis, at least from a psychological perspective, is recognizing what you can and can’t control. And not doing destructive things while you’re powerless.”

I wish you a healthy and prosperous new year for 2009.  Sushi Money is two years old this month, and it’s been a grand experiment in the personal finance blogging world.  I don’t how long I’ll continue to write here, and I may look for a different financial niche.  But its been a lot of fun.  One of my goals includes are greater focus on philanthropy.  I’m in little position personally to make significant philantrophic gifts, but I am very thankful for the time and resources I do have available. Maybe there’s some kind of venture in the making.  

In times like these it’s important not to forget those who are struggling.  The economy will gain traction slowly, but there will be many who are left behind.  As we strengthen our own financial lives, it seems a good time to try and help a few others along the way.

Today is a day of remembrance and thanks for the Veterans who have served the nation in the armed forces. So many of us have family and friends that have served, and are still serving today.  We are better for their service, and sacrifice. 

It’s an amazing day as President-elect Obama sweeps to victory, winning both the largest and the key states in the nation.  The electoral vote signaled a huge margin even as the nation still faces the red-blue popular split that divides much of America.   Yet winning the Presidency is an historic moment filled with change and promise as never before.  His victory speech was positive, hopeful and strong.

“I just received a very gracious call from Senator McCain. He fought long and hard in this campaign, and he™s fought even longer and harder for the country he loves. He has endured sacrifices for America that most of us cannot begin to imagine, and we are better off for the service rendered by this brave and selfless leader. I congratulate him and Governor Palin for all they have achieved, and I look forward to working with them to renew this nation™s promise in the months ahead.”

President-elect Obama framed his victory describing his vision for the future in bright, hopeful words.

“What began twenty-one months ago in the depths of winter must not end on this autumn night. This victory alone is not the change we seek “ it is only the chance for us to make that change. And that cannot happen if we go back to the way things were. It cannot happen without you.”

“So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, it™s that we cannot have a thriving Wall Street while Main Street suffers “ in this country, we rise or fall as one nation; as one people.”

We don’t know where the nation is headed, but for many voters, change is the key, and the new President has called for a great new direction.

“…This is our chance to answer that call. This is our moment. This is our time “ to put our people back to work and open doors of opportunity for our kids; to restore prosperity and promote the cause of peace; to reclaim the American Dream and reaffirm that fundamental truth “ that out of many, we are one; that while we breathe, we hope, and where we are met with cynicism, and doubt, and those who tell us that we can™t, we will respond with that timeless creed that sums up the spirit of a people:”

“Yes We Can. Thank you, God bless you, and may God Bless the United States of America.”

There is much to be proud of in America. Not only the wonder and strength of our democracy and the free electoral process, but for the hopes and dreams of so many, for so long. Regardless of our disagreements, we must continue trying to work together for a better future. Congratulations President-elect Obama!

In these last days before the election I find myself amazed at the emotions and tactics of the political candidates and their followers, on both sides of the aisle and at both the national and local level.  This surely is one of the most fascinating, if not important elections we have faced in decades. Today I’m stepping out of the financial discussion to share a few thoughts on the election.  This may frustrate or disappoint some of you, and it may please others.  Whether you agree or disagree, that’s fine.  I respect your views and the choice that’s right for you.  I’ll even try to put up a guest post with opposing views if someone sends it in.  But for today, here’s mine:

Who am I voting for?  McCain.  Why?  Primarily because I believe he has a better vision for the future of the nation, as well as a philosophy that strengthens rather than weakens the foundations of society over time. 

I’m voting for McCain not only in terms of my views on national security or economics, but more importantly in considering the basic elements of what one believes about freedom and democracy.   At the heart of these beliefs, for me, is an understanding that the individual in society is the strength of that same society. Whatever we do to help grow, foster, improve and assist that individual in realizing their potential and expanding their ability to contribute to society is essential both for them and the nation as a whole.  

One of the growing socio-economic buzzwords is the term human capital.  Human capital refers basically to the inherent skills and knowledge that an individual may possess in order to contribute to society and produce economic value both personally and for that society.   One of the hallmarks of America has been to establish a foundation of freedom that allows this tremendous drive by individuals to grow and succeed, personally and professionally, and to seek ”…life, liberty and the pursuit of happiness.”    I prefer to think of it the same way as Benjamin Franklin:

“All the constitution guarantees is the pursuit of happiness. You have to catch up with it by yourself.”              

The expansion of human capital through the economic fabric of our free American democracy has arguably fostered the greatest revolution of invention and creative genius in history.  Yet it isn’t perfect.  What society is?  Even with the current economic challenges we face, the grand experiment of American democracy has been an incredible success story that continues to foster industrial, technological and environmental change throughout the world.  More importantly it places people first, acknowledging both the value of human rights and the value of human life.  Something that far too often is forgotten about most of the world in which we live.

We owe that strength and genius not to the nation of America itself, but rather to its people.  And the only way we are going to continue fostering the strength of the American nation over time is to continue empowering people as individuals, and not as recipients of government programs and largesse that increasingly demands adherence and holds their future hostage. 

I read a message on one of the news sites today that was interesting.  I think it’s a creative story and not a real event, but it makes an interesting point:

“Today on my way to lunch I passed a homeless guy with a sign that read “Vote Obama, I need the money.” I laughed. Once in the restaurant my server had on a “Obama 08″ tie, again I laughed as he had given away his political preference- just imagine the coincidence. When the bill came I decided not to tip the server and explained to him that I was exploring the Obama redistribution of wealth concept. He stood there in disbelief while I told him that I was going to redistribute his tip to someone who I deemed more in need–the homeless guy outside….”

Maybe the waiter would actually smile, and say “Good idea!” if this were to happen.  Probably not however, because few of us like having our money taken from us and being told we must give it to others.  Choosing to do so is one thing.  Not having that choice is another.

I believe Obama’s vision of change and “economic justice” to be lacking in understanding for the basics of freedom and democracy, and that it devalues rather than empowers the individual in society over time.

And quite frankly I would rather politicians work to legislate for structural  economic foundations, with evolving regulatory approaches, that support free enterprise rather than redirecting the hard work and success of some to those that may do little to earn it.  I believe the dreams, creative vision and efforts of hard-working Americans actually lift up the nation over time, and that if we make taxes too burdensome, and focus on re-distributing the products of their success to those who do not earn it can only serve to undermine the fabric of the nation.

I do believe we must give and share with those who may not ever be able to achieve or survive on their own, or without help in so many areas.  But giving of your own volition is one thing.  Having your money taken and being told that you must do so is another.  Rather than government deciding who are the deserving among society to receive the wealth of others, we must foster a nation that lifts up the poorest and those who are struggling. 

We can teach, train, volunteer, and give of ourselves in so many ways, and government can help establish programs and structures to facilitate those goals.  But economic justice is far more than being “neighborly” by taxing the rich, and handing out money to the poor.  It’s a balance to be sure, but Obama’s views- and those of Pelosi, Reid, Frank, Dodd, etc., are balanced much too far to the left.

Essentially I think America needs McCain more right now than we need Obama. 

Yet from the polls, media blitz and just about every other indicator, it looks like Obama has some incredible force that may sweep him into the Presidency this election.  If so then perhaps I’m voting with the minority.  Maybe the nation needs a pyschological shift of energy or some zen-like aura of charismatic change that Obama seems to bring for so many people.   But I just don’t see it.  I would rather focus on McCain’s experience and practical approach to moving the nation forward, rather than some lofty, unscripted vision of change. 

In the car this morning I actually heard two religious hymns being sung with Obama’s name in them, holding him up even as “holy.”  I have to admit that was a little shocking to me, and I’m not even an ardent religious observer.  I have to wonder if in times of national challenge or crisis that people might be flocking to someone new, someone they want to believe in and that can “save” America?  Have many of our fellow Americans replaced their religious views with a secular perspective that is looking somewhere for hope, and are they now looking toward Obama to provide that level of dramatic change?  Maybe so.  Whoever wins the Presidency, I do think the country will be fine.  But it’s going to be a very interesting ride depending upon the direction we take.

Well the market certainly is fickle.  Down a hundred points then up a hundred.  No one really knows the direction right now except that uncertainty makes people nervous. Recession, credit crisis, investment fears, the election… Don’t get me started on the election.  Some experts see lots of downside remaining in the markets, and then maybe a huge bear market rally before the end of the year.   With time and effort, it looks like our vaunted leaders will get a handle on the challenges facing us.  Let’s hope it’s the right handle…

“All human situations have their inconveniences. We feel those of the present but neither see nor feel those of the future; and hence we often make troublesome changes without amendment, and frequently for the worse.”

                                                                     Benjamin Franklin

It’s enough to make most investors toss up their hands and move on to something a little more certain.  Like focusing on work, home and family.  We may not be able to do much about the direction of our investments, but we can certainly influence the direction of our lives.  And that, today, is enough for me. 

“Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day; begin it well and serenely and with too high a spirit to be encumbered with your old nonsense.”

                                                                       Ralph Waldo Emerson

I’m not sure most of us have enjoyed the past few weeks, but what interesting times we live in. It’s not enough that this is an election year, with little more than three weeks to go until Americans head to the polls and vote.  Who would have thought that the deepest financial crisis in generations would come just before the 2008 election?  Understandably some folks are scared about the future.  Sometimes we need to step back and remember what our lives are really about. But we’re not even close to anything our grandparents may have seen and We’re Not Headed for a Depression.

“…the magnitude of this financial disturbance should be placed in perspective. Although it is the most severe financial crisis since the Great Depression of the 1930s, it is a far smaller crisis, especially in terms of the effects on output and employment. The United States had about 25% unemployment during most of the decade from 1931 until 1941, and sharp falls in GDP. Other countries experienced economic difficulties of a similar magnitude. So far, American GDP has not yet fallen, and unemployment has reached only a little over 6%. Both figures are likely to get quite a bit worse, but they will nowhere approach those of the 1930s.”

Did you watch the 2nd Presidential debate last night? I thought it was interesting, and that they both spoke well.  McCain actually did pretty well for a change and I appreciated his focus on national security.  And what about his idea for the government to purchase defaulting mortgages? It’s not a bad idea if your premise is that housing must recover first before the economy can gain traction again. The government would step in and stop the bleeding for the ARM loans out there, helping stem the tide of foreclosures, etc. That would help consumers refinance into fixed rate loans they could handle, probably at very low rates historically. With amazing coordination, the Fed (and other global banks) reduced rates today, and that will eventually have an impact.

I’m still looking for bargains out there, and putting a little extra cash to work.  Will the market lows continue through the holidays?  I seriously doubt it.  But if it does, I’ve got some IRA money to invest in January that will have a great entry point.

On a lighter note (which we need more of), NBC has been taking heat for removing a hilarious Saturday Night Live video from it’s site, and then putting it back up after editing it.  Take a look at this really funny seven minute sketch below.  I didn’t see the first version, but watching Bush, Pelosi and Barney Frank is so funny!  And the “victims” of the subprime mess? Right on the money.  The bit with Soros at the end is priceless too.  It’s great to see SNL provide a little humor balance between the Democrats and Republicans.  Maybe the truth is a little too close…

Okay enough of the national focus for a while.  I’m going to try not to look at that stuff for the near future and take a more hopeful, optimistic view closer to home.  It strikes me that we need to think about a few other things in our lives, and catch up on responsibilities that may need examined once again.  What else should we be thinking about right now?

• Family budget:  A check-up on debt, budgeting, emergency and savings funds is a good idea about now.  All this talk about bailouts has me looking harder at paying down some debt.  I’m tweaking my debt re-payments by making them a little larger where I can.  I don’t like carrying debt, and it’s time to pay off a credit card debt I’ve held too long.  I think I’ll also tweak my savings goals and try to increase the amount I’m putting in both the savings and emergency funds after paying down that debt.  Never know when we might need that extra cash.  Getting the debt paid off will allow more to go to savings right?

• Rainy day money?  Do you have any cash sitting around at home?  I’ve never advocated saving cash at home since you don’t earn any interest on it, and inflation eats away at the value of that money.  But the events of the past few weeks have me rethinking that as well.  I’ve decided to keep a months worth of grocery/gas money in cash at home.  It’s sitting in a coffee can on a shelf.  I’ve never done that before, and hope I never need it.  Am I crazy?  But you know what?  It feels good having it sit there.
• Winter’s coming:  Are you ready for winter?  Have you thought about the house, vehicles and energy budget?  Around our place it’s time to catch up on vehicle maintenance, and getting the house ready before the freezing weather sets in.  That means cleaning out the gutters while the leaves fall off the trees, checking the furnace and other heating equipment, putting away the hoses, making sure windows are secured and sealed, closing off the outdoor water faucets and cleaning up the garage a little.  The fall weather is beautiful right now, but that means it’s time to get prepped for the colder months.
• Bill Payments: One of the issues facing consumers these days is that of credit card companies reducing available credit that consumers thought they had.  Why are they doing this?  Basically to reduce their debt load and the risk they are taking with outstanding debt.  It doesn’t matter if you have a perfect credit record, you may still find that your available credit has been reduced. 

          But what is very important is that some banks and credit card companies are also jacking up interest rates very         quickly on outstanding debt that consumers are holding on their credit cards, seemingly for no reason.  My point?  Make darn sure that all debt payments are paid on time or you’ll find yourself paying exhorbitant interest rates on that debt.  It’s also a good time to remind ourselves to pay all our bills and debt on time right now.  And maybe even to get rid of unnecessary expenses. Do you really need all those cell-phone features?  Maybe you don’t even need a cell-phone! 

         One of our relatives’ children had a birthday recently, and it was a very special day.  Just watching him smile and ride a new bicycle was a wonderful sight.  It served to remind me how our children live in the present, and find joy in the simplest things.   We can learn from that, and we should remember not to burden our children too much with the challenges we take home each day.  Instead we can help inspire them, and help them learn about hope, faith and the good things that are always present.  One day we’ll be long gone, and our grown children will live and survive through their own challenges based upon what they have experienced and learned in life.   If nothing else, we can help them prepare for the future in many positive ways.

  Here’s hoping for better days, and that you find great joy in life’s simple pleasures.  Best regards!

When the nation is struggling economically, it is often those at the fringe of poverty or crisis that are the worst hit.  Add a natural disaster or two to the mix, and you have a prescription for hard times at its worst.  The American Red Cross, the Salvation Army and other relief agencies are having a difficult time raising funds to support their operations after Hurricane’s Ike and Gustav decimated the gulf coast.

In large part it’s just that the media interest has been focused on other things the past couple of months.  Instead of lingering news stories about the effects of the hurricanes, we’re now embroiled in the Presidential election and the financial crisis at the center of national interest.

But the hurricanes along the Louisiana and Texas gulf coast did an incredible amount of damage, wiping thousands of homes and businesses off the map and all but destroying the gulf seafood industry for years to come.  Did you know that the combined costs of Hurricane’s Ike and Gustav are forecast as second only to Hurricane Katrina?  The ongoing credit crisis is not going to make it easy for these states to rebuild their infrastructure either.  

But where’s the real national interest?  Where are the Hollywood stars traipsing through the streets?  Where are the MTV benefit shows and internet campaigns raising money for all of those displaced by this disaster?  The government’s response was much improved over Katrina, so we’re not reading story after story about the “failures of the system.”

But the real failures may be that the American public is not helping those in need as we’ve done in the past.  The national interest is just not there right now.  Whether it’s because of the lack of media interest, or that it wasn’t jazzy New Orleans that was hit we don’t really know.  But it looks like disaster fatigue has set in, not enough people are donating money and a lot of folks are really in need of help. 

For many of us living far from the region, the most efficient way we can help is by donating money to the organizations that put people and resources on the scene of the crisis. With that in mind, we’ve posted a few links to leading disaster relief organizations below.

All of these organizations provide an essential role in leading relief efforts, and getting food, water and coordinated shelter and clothing for people who need it. Especially for the children.  Please help in whatever way you can, or through your local relief organization.  Thank you!

American Red Cross Donation page

Salvation Army Donation page

Mennonite Disaster Relief donation page

It’s no surprise to many of us that consumer price inflation has risen at the fastest rate in 17 years.  We see that with each trip to the grocery store or gas station.  It raises questions about interest rates.and a lot of other issues in our future. Per Bloomberg:

“The report may intensify the debate between those Fed policy makers that forecast inflation will slow and those concerned that price pressures will accelerate. Increases beyond food and fuel, including gains in clothing, airline fares and education, make it less likely that central bankers will be able to keep interest rates unchanged for long.”

So far this year the government’s CPI shows inflation running at over 5 %.  

“There is “a tremendous amount of cost pressure here that is affecting many, many industries,” William Poole, the former St. Louis Fed president, said in an interview with Bloomberg Television. Today’s report “raises the general trajectory” of interest rates, reducing the chance of cuts and bringing forward the likelihood of increases, he said.  ”

Imagine if inflation stayed at that rate for several years or even increased more?  If we’re not earning at least that much in interest on our savings or investments over time, then we’re actually losing money.  

The Fed must walk a fine line between keeping rates low due to our current economic challenges and raising rates based on the threat of inflation.  So far they’ve held the line and most believe will continue to do so this year.  But real estate is clawing for traction while foreclosures are still high.  Yet Alan Greenspan sees a potential housing bottom in 2009.  That doesn’t mean housing recovers quickly however.

Greenspan cautioned that even at a bottom “prices could continue to drift lower through 2009 and beyond.”  An end to the decline in house prices, he explained, matters not only to American homeowners but is a necessary condition for an end to the current global financial crisis.

“Stable home prices will clarify the level of equity in homes, the ultimate collateral support for much of the financial world’s mortgage-backed securities,” he said. “We won’t really know the market value of the asset side of the banking system’s balance sheet — and hence banks’ capital — until then,” he said.

And that’s the question:  When is Then?   I’ve believed housing would begin to recover in 2009, and we may indeed see that.  But based on the credit and banking issues the nation (world) is facing, we’re going to see a slowly drawn out recovery.  It may be 3-4 years before we really see stability in both housing and lending, or the economy.

But the economy may recover more quickly in terms of jobs and growth if we can get a handle on energy and defense spending.  Also not something that may happen for a couple years or more, but I believe it will come.  Yet that belief is simply an opinion, one of thousands. We don’t know what the nation will face economically in a few years, or the challenges we’ll see at home.

For that reason, there’s little choice but to keep improving the “family bottom line.”  That means we’re still saving, working off debt and investing for our future.   To get to that future, we must embrace our vital role in creation of a financial structure that supports our needs and choices.  Retirement is something we all dream of, but it’s not something that, ideally, just happens when we reach a magical age.  It could, but most of us would like to plan ahead a little more. 

Walter Updegrave hits on the retirement planning issue when asked by a couple how they can determine how much money they’ll have when they retire at age 65.  He says instead to determine how much money we’ll need to support the lifestyle we want, and then we can decide when to retire.  

“I mean, it™s not as if we get a comfortable and secure retirement just because we reach a certain age. The real issue in determining when you can retire is whether you™ve got enough in savings and other resources so you can leave your job yet still live the lifestyle you want, or at least one that™s acceptable to you.”

“What™s more, this sort of assessment isn™t something that you should be leaving to the eve of your expected retirement date. You should ideally keep tabs over the course of your career on your progress toward a comfortable retirement. And at the very least once you hit the home stretch – that is, when you™re within 10 or so years of when you hope to retire – you should be doing a fairly rigorous analysis every year or so to confirm whether you™re still on track to achieve your target retirement date and, if not, re-assess your plan.”

The article cites many other considerations such as social security and a retirement budget.  If the discussion looks somewhat redundant to many people, that’s because there are so many people asking these questions. 

I don’t know about you, but I find new things to learn every day.  A smooth upward track toward a financially secure future would be nice.  But along the way our financial fortunes fluctuate and change.   Keeping up with those changes is part of the game, and planning for how to get to retirement means we re-visit a few things along the way.  I’m still working on the financial structure that will support the future I want.  And I’ve embraced my role in helping create it.  It would be nice if the economy and markets would help out a little more, but there’s no time to wait.