Venezuela has many New Year’s Eve rituals and traditions that involve grabbing luggage and running around the block after the stroke of midnight to ensure you travel in the upcoming year. I do this every year!
This Sunday morning, I woke up knowing that I wanted to go somewhere this year. I created some resolutions that let me indulge my obsession with my retirement savings and my lust for adventure.
Resolution 1: Maxing out my Roth IRA
The bitter truth-33% of Americans have $0 in their retirement savings. Those who are between 18 to 34 years of age, 42.4% have yet to start their retirement savings. That’s pretty bleak.
This year, I decided to do something better. I made a commitment to spend less and to contribute the maximum amount to my Roth IRA. The more I save now, the more I’ll have in retirement. For 2017, the contribution limit is $5,500, and if you’re over 50 years old, the limit would extend to $6,500.
Keep in mind; I’ll be investing this money in a mix of index stocks and funds. Why am I doing this? The power of compounding interest encourages me to invest in a mix of assets.
Given a 7% return on a yearly $5,500 investment in the Standard & Poor’s 500 (S&P), after 40 years you’ll end up with approximately $1.2 million.
Income + Retirement = Lots of travel
Resolution 2: Find a side job
Traveling is a luxury. In order to responsibly accommodate both savings for retirement and traveling expense, I have decided to pick up a part-time job in 2017.
The internet offers unlimited ways to connect with potential employers. Online freelancers platforms like Upwork can work well to get me new copywriting or editing job.
Resolution 3: Buy some stocks
This year I’ll be adopting a different approach. I’m planning on buying a diverse stock portfolio. Instead of managing to do it all on my own, I decided to ask for help from my fellow Industry Focus hosts. Without any doubts, experts will help immensely, and I’ll end up with a diverse portfolio. This way I’ll be able to stash more money in my Roth IRA. Which I hope will be used to fund a trip or two in my old age.
To all my readers next year I’ll report back you on my progress. Until then, enjoy 2017!