Finally Doing Something!

I’ve dabbled in investing over several years but I was never really serious about or serious about planning for my retirement. In caring for the Parental Unit I’ve realized just how crucial proper planning is. They have some money but it’s likely not going to be enough for skilled care if that’s ever needed.

I met with a financial advisor this week and I really didn’t know what to expect but it wasn’t what I expected if that makes sense. The whole starting process has a low barrier to entry. I’m starting out with a brokerage account that has no minimum to start. The fees are just over 1% and annual returns of 7.5-9% based on 5 years meaning some years could be higher and some could be lower. I laid out my vision for retirement and the FA was very frank about it. It’s possible to meet my goals but I’m going to have to be focused on contributing consistently and since I’m single (still :-|) I don’t have very many expenses and I make good money so I’m able to dump a lot into it per month and still have some money in my pocket. I’m excited that I may not have to work for the rest to survive. I’m going to have to be waaaay more disciplined than I have been about saving but the prospect of having a decent retirement is pretty motivating.

I also dropped $500 into a robo-advisor account on Sofi. I set it for a moderately aggressive trading strategy and so far I’ve made $15 in about two days..I’ll likely move it to an aggressive strategy as I’m setting this account up for the long term so I’m good with some short-term losses for long-term gains. Something has definitely changed in my mindset about money. I’ve tried to “get into” investing in the past and it’s never really made sense to me. But this time is different. I sat down and wrote out all my expenses and for the first time maybe ever I know where my money is going and that makes me feel better about taking some risks. I don’t want to lose money, obviously, but I’m ok with some losses to get to where I want to be. I’m not trading individual stocks since the last time I did that I got pretty obsessive about it and I also don’t want to deal with any kind of capital gains taxes so my investment strategy is for at least a year and then re-evaluate.

The topic of money can be taboo but the more I learn about it and the more it sticks in my head the easier it is to talk about, plan for and deal with…Maybe that’s just me, I don’t know.