To conclude a jam-packed week full of sight-seeing, great experiences, and informative sessions, we spoke with Anmarie Kolinski about the importance of budgeting and preparing for retirement. The preparation for retirement is largely dependent on the individual, since companies are not offering as many post-retirement benefits nowadays. Unfortunately, many people fall into the fallacy of believing that retirement is a long time away and that planning for it while they are young is not as important. However, the truth is that the earlier we start planning, the more resources we will have when we retire. Furthermore, people are living much longer due to advancements in medicine and healthcare and the retirement period is much longer than it traditionally has been in the past. It is imperative for us to start as early as possible so as to give our investments the appropriate opportunity to grow interest.
Although planning for retirement right now seemed like an intimidating idea, Ms. Kolinski assured us that it isn’t as complicated as we thought and that with a little research and effort, we can take the steps necessary to prepare for the future. The process starts with determining short, medium, and long term goals. She encouraged us to think about what we planned to do during our retirement period, what we thought the status of financial markets will be during our retirement period, as well as the number of years we estimate to be in retirement. Someone who plans to travel around a lot or live in a luxurious area will invest differently from someone who doesn’t plan to move around during his post-retirement period. After gaining some clarity about our post-retirement plans, it was just a matter of determining investment goals, working towards those goals, and getting into the habit continually assessing progress. Ms. Kolinski really stressed the point that it is incredibly important to start early so as to take advantage of the time value of investments. Money grows interest and compounds over time.
She also shared other important ideas with us such as saving for important life events to avoiding debt and maintaining an emergency fund. Life events such as buying a house and getting married are exciting, but can take a large toll on one’s finances. Although it may be necessary to take on some debt to finance these events, it is prudent to start saving early so as to alleviate the debt burden. Maintaining an emergency fund is motivated by the same idea. Everyone is faced with emergencies and unpredicted events that require immediate attention and often, monetary resources. Maintaining an emergency fund requires a small amount of discipline and can protect us from having to take on additional debt when we are faced with these situations.
Anmarie shared some great information with us regarding how we can make sure that our financial situation is secure in the future. The world belongs to people who have developed their mind’s eye and can effectively plan ahead. As executive leaders, it is important for us to develop these planning skills, not only to deal with the issues we will face in managing subordinates in the workplace, but also to make sure our personal and financial affairs are in order.
Written By: David Sentongo