I think everyone can pretty much agree: NONE of us wants to depend on our Social Security system to serve as our primary source of money in retirement. Sadly, too many people do, and find themselves shocked by how little they have to live on in their sunset years. An unfortunate side of effect of this problem is that it’s causing more seniors to reenter the workforce, impacting employment opportunities for young people.
 
Would you like to avoid this situation?
 
This is my advice: Develop an investment program NOW that will provide sufficient assets for your retirement. How your wealth grows will be a function of the following:
 
1. How much you invest (more is better!)
 
2. The rate of return on your investments (higher is better!)
 
3. The time period over which you are investing (longer is better!)
 
In each case, the larger the amount, the greater the assets you’ll build. Therefore, your chances of accumulating significant wealth will be greater if you invest as much as you can (rather than being a big spender on “things”), as early in your career as you can. This will allow your returns to compound over a longer period of time. Strive to invest at least 15% of your income for retirement and take this into account in your budgeting.
 
Now here’s the really important part: Beginning your investment program as soon as you start your career should be a top priority. Save and invest early, regularly, and as much as you can in a diversified, long-term investment program. It will provide you with the best chances of building significant wealth for your retirement, achieving financial freedom, and giving generously to charitable causes.
 
Why is it so important to start as early as possible? It’s because of the power of compounding your returns over many years. Check out this example. If Kyle invests $2,000 per year at a 7% return from age 18 to 27 and lets it grow at that rate until he is 65 years old, he will have a much larger nest egg than Ashley who waits until 31 to start investing and puts $2,000 in each year until age 65! This is true even though Kyle only invested $20,000 versus Ashley’s $70,000! The math is mind boggling. That’s why it’s so important to begin investing as soon as your career begins.
 
If you want to live a lifestyle in retirement that is similar to your career years, you simply have no choice. By saving and investing 10-20% of your monthly income, you’ll be able to significantly supplement your retirement and Social Security income. Consider starting an automatic monthly investment plan that invests it in a diversified investment program according to an appropriate asset allocation among stocks, bonds, etc.
 
It’s not as intimidating as it may sound. Start familiarizing yourself with the financial markets. Learn about stocks (an ownership position in a company), bonds (longer-term loans that pay interest), mutual funds (pools of money invested in multiple securities for multiple shareholders), and the economy. Start reading the business news section of your paper/websites and watch financial networks (e.g., CNBC, FoxBusiness, and Bloomberg). Think of some different companies you’d like to invest in and build a “paper portfolio” to see how it would perform. Watch them rise and fall from day to day to acquaint yourself with how the markets move. Be SKEPTICAL of anyone claiming that they know how to predict the market. Be patient, disciplined, and diversified and think long term. It will help get you there.

How have YOU begun saving and investing NOW for retirement? What have been your biggest challenges in making this happen? We welcome your questions, comments, and suggestions!
 
 

Why do some people soar in their careers while others flounder?

I asked myself this question very early in my own career, and I’m sure glad I did. The observations I made—and the solutions I came up with—served me well and, I believe, were instrumental to my career success.

Here was my secret. On my first day on the job (or in the performance review cycle), I discussed the upcoming period with my manager. At the right moment, I would ask him or her, “What would be the most significant achievement by the end of my review period?” Then, I focused on accomplishing this with all of my might. If I was successful, how could I not receive a great evaluation and salary increase and position myself for a promotion?

I did this every time. And, each time I delivered, my manager delivered. In a nutshell, I set myself up for success. It sounds simple, but few do it. 

The first time I used this approach was on my first job out of college, at the ripe old age of 22. My manager had a very precise answer to my question. Over the past several years, the accounts payable division had many unresolved invoices that had to be accounted for every month. By the time I inherited the job, these problem invoices dated back as far as 18 months. None of my predecessors had solved these problems, instead pushing them on to the next unfortunate soul. I was next in line. My manager told me that resolving these problem invoices would be a crowning achievement since my predecessors had simply “passed the buck.”

Now, armed and dangerous, I knew my mission and devoted all of my energy to accomplishing it over the next six months. With relentless focus and some ingenuity, I ended my term with the oldest unresolved invoice being three months! My manager was completely floored. I received his all-time highest evaluation (and the highest raise out of all of my peers), and this approach set the stage for several significant promotions. Ironically, in a mere twelve months, I was promoted to his level. I kid you not!

You may find a better way, but this approach literally proved infallible for me over the course of my career. If you have a clear understanding of what the boss considers outstanding, how can they not give you a great review if you deliver the goods?

Regardless of whether it’s your first job or you’re in the late stages of your career, it’s essential to know how you’ll be evaluated and what constitutes excellence in the eyes of your supervisor. Then, it’s a matter of getting the job done.  

Oh, one last thing. Never miss a deadline from your boss. Strive to be a “piece of cake” to manage! They’ll greatly appreciate your reliability and it will make a difference in your job reviews. 
 

Despite growing up in a very modest-income family, we were NEVER financially strapped.

That’s because my parents stuffed envelopes with cash for all key expenses and we lived on that.  No money, no spending—and definitely no credit card overspending.

I’ve taken my parents’ conservative approach to heart by spending less than we earn and always paying off our monthly credit balances. That’s one reason we’ve always lived financially stress-free.

Sadly, we are witnessing a national tragedy of epic proportions.  We’ve turned into a society where overspending and debt have taken control of millions of lives, resulting in skyrocketing bankruptcies and enormous family stress. Our government is in the same pickle.

How on earth did this happen? After all, it hasn’t always been this way! Here are several reasons:

• The widespread availability of credit cards and a lack of knowledge and discipline to use them responsibly
• Educational institutions have not placed financial literacy as a priority despite the importance of budgeting and investing in daily life
• The rise in consumerism and cultural focus on “things”

 
The fact is, easy access to credit cards has given consumers a false sense of financial capability, luring them to spend much more than they earn.  Today’s average family has several credit cards with monthly balances well into the thousands of dollars because they spend more than if they were forced to pay cash. They fail to pay off their monthly balances and the finance charges mount. Their “things” cost much more, and eventually, there’s a day of reckoning.

For example, let’s assume you bought a computer worth $1,000 on your credit card with an 18% annual interest rate. You decide to pay the minimum monthly balance of $30. By the time you’ve paid off the computer, you will have spent $1,396 over a 3.9-year period! That’s almost 40% more than the cash cost of the computer! Yet, interest costs are often completely disregarded by American consumers. 

Thankfully, you needn’t be a rocket scientist to know how to manage your finances well. You simply need to know the basics and abide by the disciplines and key principles—to use credit wisely and sparingly and to resist buying if you can’t pay cash.

 Also, we invite you to share this with friends and encourage them to sign up for our newsletters by emailing me at dtrittin@dennistrittin.com.

In the popular kids’ book Alexander and the Terrible, Horrible, No Good, Very Bad Day, the small protagonist starts out mournfully, 
“I went to sleep with gum in my mouth and now there’s gum in my hair. When I got out of bed I tripped on the skateboard and by mistake I dropped my sweater in the sink while the water was running. And I could tell it was going to be a Terrible, Horrible, No Good, Very Bad Day.”

Ever had a day like Alexander’s? Or even a Terrible, Horrible, No Good, Very Bad WEEK?  Month? Year?

Adversity, unfortunately is a fact of life, whe ther it’s as small as waking up with gum in our hair or as big as experiencing a major health issue, discouraging career setback, or the loss of a loved one.
When facing our toughest times, we simply don’t know how deep the pain will be or how long it’ll take to recover. For many, this kind of uncertainty can lead to hopelessness and even depression.

It’s important to remember that every trial has a different recovery path—some admittedly longer than others—but you WILL recover. That’s why in hard times, it’s essential to maintain a sense of hope. After all, some of our greatest triumphs will come following a pe riod of despair. We just don’t know it at the time!

When we’re in an emotional valley, it helps to remember that it won’t always be this painful, and that one day we we’ll experience joy again. Thankfully, time has  a way of healing and getting us through our toughest challenges. We may even come to realize that our adversity prepared us for something greater or was even for our own good!

Regardless of the adversity you experience, it’s critical to remain hopeful and connected to your support system. This may mean reaching out to others for hel p rather than relying solely on yourself (tough for us independent types!). After all, that’s what friends are for, and you would do the same for them!

Finally, if you’re really struggling with a tough time, consider “projecting” your situation onto a friend by imagining that he (or she) is experiencing what you are. What objective advice would you give if him or her? Then, listen to your own advice! It may sound a littl e strange, but it works!  

Bottom line: When hard times come, keep going, keep looking up, and keep moving forward.  It’s an ancient and proven truth that day follows night and “joy comes in the morning!”

Sometimes I wonder how we all survived before sticky notes. They come in handy, don’t they, for jotting down all those things we want to remember to do? The discipline of writing down our tasks, and the sense of accomplishment received from completing them, are tell-tale signs of a productive person. I begin each day with a to-do list and I know with certainty it has made me more focused and effective. 

Doesn’t it stand to reason, then, that we should also take a “sticky pad” approach to planning our lives? After all, the most successful people begin with dreams and then establish goals and plans to make them come true. Poor or random planning puts your dreams in jeopardy and, at best, makes it take that much longer to realize them.

Even if you’re not naturally a goal-setter, it’s not difficult to become one.  Start by imagining what you want your life to look like. What are the large-scale goals you hope to achieve?

Once you’ve established your long-term goals, you can set some shorter-term goals that will help you achieve them. You can set one-year, six-month, and one-month goals, all of which will ultimately contribute to the larger picture.

At the same time, don’t forget your daily to-do lists.  You’ll be amazed how much more you accomplish. It doesn’t have to be a fancy leather-bound day-timer to keep you on track.  Many times all you need is a vibrant-colored sticky note placed somewhere visible to remind you what you hope to accomplish that day. Oh, and once all your items are checked off the list, be sure to take some time to enjoy yourself for a job well done!
 

It seems last week’s email, “The Power of (Your) Words,” really resonated with people. Those who responded told me they found it both challenging and convicting.  Several also mentioned they thought the world would be a much better place if EVERYONE heeded its message: to only say things about other people that you wouldn’t mind them overhearing. I couldn’t agree more.
Of all the success pointers in What I Wish I Knew at 18, I think this is possibly the most dynamic—and the most difficult—to uphold. It’s so easy to fall short on this one. Somehow we have this warped view that tearing others down builds us up. You’d think we would outgrow it as adults, but all too often, we don’t.

What if teachers and school administrators everywhere challenged their students to live by this principle and see the difference it makes? What about all of us adults in our workplaces, families, and social settings? What if it became a way of life in how we think, relate, and communicate about others? Can you even imagine the possibilities? It might just change the world—in a very good way!
 

Are you game to try…and, if so, to spread the word?

I’d love to hear if you’re going to take me up on the challenge. Please leave a comment below to let me know you’re in. Then share the link–and the challenge–with your friends!
 
 
 

Words have incredible power. They can be uplifting or destructive. They can be true or false. They can stay solely with the person with whom you’ve communicated or go in a million different directions outside of your control. This is especially true if you express them in an email, Facebook®, Twitter®, or text. Words also reveal much about our character—especially when we talk about someone who is not present. They speak to our trustworthiness, loyalty, kindness, and respect.

In the past few years, some horrific tragedies have occurred among young people when they were publicly ridiculed through gossip, texts, or social media sites. Some of these even resulted in suicide. So much heartache—all caused by the power of words—used heartlessly and irresponsibly.

One way to demonstrate impeccable character is to only say things about other people that you wouldn’t mind them overhearing. Try it even for a week and you’ll be amazed by how this affects your choice of words. You’ll be admired by others for your tact, restraint, and uplifting spirit! And, if you can get others to join you, it might be the beginning of a wonderful movement in our culture! Are you up for it?
 

Here’s a big heads-up for teens heading to college or a new workplace this fall: If you’re a person of faith, keep up your spiritual momentum after high school!

Leaving home, to college or the workplace, is a time of both newfound freedom and  huge distractions. Most of you will have a total blast with wonderful new experiences, but it can also be overwhelming. If you’re not careful, the social life can take precedence and lead you down the wrong path. All of this comes at a time when you may be in a new town, don’t know anyone, are adjusting to a new study schedule, miss your family and friends, and need to find a new worship venue—a daunting task, even for adults!
   
If you’re a parent, coach, counselor, mentor, or faith leader, you can be a great source of support at this crucial transition time. But don’t overdo it. This has to be a decision they make on their own to carve out time for their spiritual life and stay true to their faith. 

Fortunately, most communities and colleges offer a wide range of choices, including spiritually focused organizations for young adults. It will be important to connect with either one of these organizations or with a

worship center of some kind that offers opportunities for fellowship, service, and education.

Another benefit is that spiritually connected students more readily develop new friendships with peers of similar norms and values.[i] What’s not to like about that?

There’s a proverb that says, “As iron sharpens iron, so a friend sharpens a friend.” So, if you’re a person of faith, don’t lose your spiritual momentum when you leave home. By connecting with a worship center and continuing your faith walk after high school, you’ll make new friends, receive support, and be spiritually sharper during this amazing and crazy time of your life!

Do you have some ideas for staying connected in your faith walk when you leave home?

Please share them by commenting below.

[i] Religious Involvement and Educational Outcomes: The Role Of Social Capital And Extracurricular Participation, Jennifer L. Glanville, David Sikkink, Edwin I. Hernández, Article first published online: 11 JAN 2008, DOI: 10.1111/j.1533-8525.2007.00108.x, Sociological Quarterly, Volume 49, Issue 1, pages 105–137, Winter 2008.

Money, money, money.

Few things in life generate as much interest yet demand more responsibility. And while money itself will not bring happiness, mismanaging it can surely ruin a peson’s chances  for success and cause a lot of UNhappiness.

The principles of wise financial management aren’t that tough to master. You simply need to know the basics and abide by the disciplines and key principles. It also pays to understand and avoid these ten most common financial mistakes:

1. failure to set goals and plan for major purchases and retirement
2. spending more than you earn and failing to budget and monitor expenses
3. incurring too much debt, including excessive credit card usage
4. investing too little and starting too late
5. incurring significant fixed expenses that can’t be reduced in difficult economic times (e.g., spending too much on housing and cars)
6. ill-timed investment decisions (“buy high, sell low” habits and market timing)
7. poorly diversified investment portfolios (overly concentrated in high risk stocks)
8. impulse buying and lack of value consciousness when shopping
9. inadequate financial knowledge 
10. lack of discipline and personal responsibility    

We all need to keep these principles in mind both now and in the future. Periodically review how you’re doing in each of these areas, and encourage the young people in your life to do the same.

If we can all successfully avoid these traps, we’ll be in excellent financial shape!

What are some ways you’ve learned to avoid–or overcome–costly money mistakes in your own life? Do you ideas for passing these principles on to young people? Please share your suggestions and comments below.


 

Been watching the news lately?  Seen the riots in London–and elsewhere? 

I believe we are witnessing a growing epidemic of young people who are living rudderless lives without purpose, passion, or honor. It is shown in increasingly bold public displays of anarchy and the reasons are multi- faceted and deeply rooted. Many are wondering if it’s too late to reverse course. While the scenes from inner cities and even state fairs make one pause, we must promptly seek out bold solutions because the problem is escalating.
I also believe there are three segments that will determine the course of events and potentially turn the tide. The first involves our cultural drivers, primarily corporations whose messages, creative artists, athletes, and products heavily influence our impressionable youth. The second involves parents who are creating and guiding our children. 

Finally, our schools and universities have a profound impact on our children, notwithstanding the fact that many are deemphasizing ethics and values in their programs. By not being willing to take a stand on strong absolute values, our institutions and leaders are not providing the moral compass our generation needs to advance our culture and reach their full potential. Too many young people are left to create their own definitions of morality and the results are entirely and tragically predictable. 

It strikes me that two things must change for our generation to thrive. One is that the key influencers: parents, schools, and culture drivers must come to define a universal vision for an honorable and productive life and promote this repeatedly (through messages and actions) to our young people. The second is that our children need to be equipped with practical, before-the-fact life wisdom for the key decisions they will face as adults. By doing so, they will be more apt to make the right decisions the first time rather than losing hope and “taking it to the streets.” 

I sincerely hope the What I Wish I Knew at 18 resources will be increasingly viewed as part of the solution by sharing an honorable success vision and practical life pointers. If you agree, will you join us by passing along the word–and the resources? Whom do you know that could use these resources in their work with young people?  A coach? A teacher? A counselor? A friend or family member? 

Let them know about What I Wish I Knew at 18. Better yet, buy them a copy yourself and let it speak for itself!

What are your observations of (and possible solutions) for the challenges facing our young people today?  Please post your comments below.