27 June 2006

How well have you thought about your future?

I admit, I am not as young as I hope I am. Five years ago, fresh out of college, I haven't thought that I had to start saving for my retirement. That's right, I am now concerned on how I am going to live post-retirement. It is a big thing here in the US that you have to save up for your retirement as early as possible. You have to worry about 401k, bonds, stocks, mutual funds, blah, blah, blah.

One reason KC and I decided to move here is that we see the US as a better place to raise our children (or presently just "child") and save money and probably one day go back home and have enough money that we don't have to worry about our financial future. Just save a few hundred thousand dollars and go home and live off the interest. Sounds great, right?

That plan still sounds realistic but what if somewhere along the way we decide to stay here for good? Where will that put us financially? Good advice is that you put aside at least 5% of your income to your 401k and maybe another 10% on savings and other investments, that way when you reach 65, you have enough money to live comfortably until you reach 95 years.

But is saving money mean that you don't enjoy your money? Or is it to leave to your children and let them enjoy the fruit of your hard labor? Or will you be like Warren Buffett and just leave your money to charity?

Right now, thinking about all of these options and decisions are a big load on our backs. Sure, we would like to spend some of the money we earn now and maybe leave some for the future but risking that we would not be ready financially when we retire. But on the other hand we can save as much as we can and just enjoy it when we're 65.

Crap! I miss having my parents just handing me my allowance and not worry about this.

I guess I'm just growing up.

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