Thought for today:

Savings Plans can start very small and still grow surprisingly well.  Many DA members review their plans with their Pressure Relief Group, for unbiased perspective on what is within their means to invest.

Some companies encourage their employees to take part in automatic payroll deductions on pre-tax dollars into retirement accounts, such as a 401k account in the U.S. tax code.  Usually these are mutual fund accounts, and they can seem to grow by themselves the longer we let the systematic deposits accumulate.

With these automatic-deposit retirement accounts, “dollar cost averaging” helps us deal with the fluctuations in market price.  We wind up buying fewer shares when prices are high, and more shares when prices come down.  Over a long timeframe, the cost of the investment averages out to a lower cost.

A member shares:

“My company has a matching retirement program.  The company contributes a percentage of the first few thousand dollars I invest for the year.

“There are dozens of fund to choose from, which was overwhelming.  So I also have a financial advisor who recommends which funds to invest in within the ones my company offers.  This way I have a good mix of global and national funds, and large and small cap funds.

“It took some getting used to investing in a retirement account.  I learned the difference between additions to my account from contributions vs. the funds’ investmentperformance.  I was confusing the account’s performance  with the contributions I put into my account.  I had to look at the statement to see what was really happening.  An investment can grow simply from the deposits I make, even though it could be underperforming when compared to other types of investments. That’s why expert advice is important.

“It took some getting used to, but the perspective I gained from my financial advisor and from DA has been very helpful.  DA doesn’t endorse any particular investment.  They just recommended that I find one that works for me.

“Money is not so mysterious any more.  I’m so grateful that I invested in my company’s retirement matching fund.”

Getting professional advice:

Your account will likely grow, but there are risks with many investments, and a financial advisor is usually worth their fee.  Members comparing their experiences when saving money can also help each other “learn the ropes”.

Ask:

Do I take advantage of the snowball effect on savings?

Meditation for today:

A true expert in their field can distill even the most complex subject into laymen’s terms.  If confused by financial jargon from an advisor, we can stop and ask questions.  If we don’t understand clearly, we can reconsider the transaction.  Being willing to walk away if doesn’t feel right, we will always find our answers when we are true to our intuition.

“I will consider my savings – whether the money is for a prudent reserve, my retirement, or for something extra I need to buy.

“I am not afraid to ask questions about what I don’t understand.”

“I am a good steward of the gifts I have been given.”

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