Long-Term Retirement Planning - Give yourself a Christmas gift that will last long after the egg nog.

It’s the single best piece of investment advice I was given and can share.

Christmas is one of my favorite times of the year! I love everything about it. The Christmas music, the grace and peace of that Christmas spirit, time with friends and family, maybe snow, and gift giving. While I’m a firm believer in it is truly better to give than to receive, there is one gift I would recommend you give yourself this Christmas and every Christmas going forward: The gift of increasing your retirement savings rate.

It’s the single best piece of investment advice I was given and can share. It doesn't have to be extreme, but you need to be intentional and systematic about it. Even if it’s a 1 or 2% annual increase in your 401k or $50 more a month into your Roth. If you think about the short-term difference every paycheck or month, it’s not a lot. While you may not even notice it, think about what that does over the course of a few years or better yet, two to three decades!

The key is to make it an annual tradition and systematically ratchet up that savings rate. Finance is a marathon, not a sprint.

Partner’s Pro-Tip

Give your debt repayment a raise as well. Increase your mortgage by $25 or $50 every Christmas. If you can do both and stay with it over the course of time, you will very gradually increase your savings and reduce your debt. That, indeed, is a wonderful gift to give yourself!

Click to schedule a complimentary retirement analysis to see just what the difference would be.

Merry Christmas!

Dan Klein, CFP®*

Financial Advisor, Senior Partner