Tool 4: (new!) Prepare for Retirement

Tool 4 used to be the same as Step 4, but we have now updated it. --As soon we start working, we should ideally begin preparing for retirement--I read that somewhere but can’t remember where (which is why you see me hesitating in the beginning of the video! I want to give credit where credit is due, but it made so much sense to me that I guess it just felt like a universal truth! Anyway…) It IS true. Getting started planning for retiring from working early allows time to work its magic of compounding.

The post on the resource that is like the (now defunct but formerly very useful) Money Magazine is HERE.

Watch the Tool 4 video on Vimeo by clicking HERE,

The link to the posts about IRAs is HERE and Roth IRAs is HERE.

The current contribution limits can be found HERE.

For 2025 the contribution limit is $7000 for workers under 50 and $8000 for workers over 50.

For 2026, the limits are $500 more, for a cost of living increase (shortened to COLA.)

Consult your tax professional to figure out how much you can contribute.

Once you put the money in there, invest it ! Don’t be like me 10+ years ago. (See the April Fool’s Day post HERE.)

We always suggest getting started by dollar-cost-averaging into an S&P 500 tracking ETF, but you might also try a Target Date Fund--That link is to the explanation by Investopedia, but they are basically an investment with an end date in mind so that the money is invested well and is also available in the future when you'll need it.

We made a very basic spreadsheet that you can use to start thinking about how to retire. That link is HERE. It will prompt you to make your own copy. Start by filling out the questions, and then use the calculator from SmartAsset which you can also find HERE. It will give you an idea of how much you might need to save in order to retire when you want to.

So yes, as soon as someone starts working, one should start saving for retirement AND if one hasn’t started yet, it is NEVER TOO LATE. If one’s company offers a retirement plan of any kind, one should make sure to take full advantage of it, including any match the employer might offer.

It’s never too late to get started with investing.

We are honored to be a part of your journey. Thanks for reading this.

Quick Links:

What is Investing? is HERE

What is The MGB Investing Starter Kit? is HERE

Step 1 in the MGB Investing Starter Kit process is HERE

Step 2 is HERE --Keep a 'Digit Tally', like You Need A Budget or RocketMoney or our free tracker template HERE

Videos for all 12 steps of MGB Investing Starter Kit (scroll down for step 1)

Videos for all 12 tools of the MGB Investing Starter Kit (again, scroll to the bottom for tool 1)

To buy our self-paced investing course for $49, sign up by clicking HERE.

For the 90 min zoom class only during Black History Month for $98, click HERE.

To register for our ANNUAL course, click HERE.

Disclosures

Equity through equities.