Planning for Retirement in Your 30s

Contributed by This Woman's Hustle Network and a TWHN advisor.

I wanted to do a blog posting geared toward savings and retirement in the 30s because these years are usually crucial decision making years that will determine the rest of our lives. Often, the average woman in her 30s will not research the information she needs or may not have the time or resource to do so. So I thought of compiling it all here in this one blog for your accessibility. Enjoy and feel free to take notes!
~ Miss LaShanna D
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If it were summarized what retirement planning in your 30s was all about, then it would probably go something like this... When you're in your 30s, you are in a unique position from a retirement planning standpoint. For most of us, these are the "make or break" years - here's why.

It's certainly understandable how those in their 20s are too busy with other things in their lives to think about retirement. I certainly laugh when I reflect back at my year book and what I THOUGHT I wanted to be doing in my 20s and 30s. It's so far away and really not on their radar screen. But most 30-somethings have settled-down a bit. Those college years - and hopefully college loans - are far behind; perhaps you're married and even started a family.

The point here is that by the time you've reached age 35, most of us know exactly what we want out of life. We know where we want to live and we have pretty solid ideas about our career goals. You've also been working for more than ten years and you come to realize that retirement is not too far away. And after all, those first ten years went by pretty quickly. I held an Empowerment Gathering through my Outreach last year and had young ladies to speak on these very things and it was very eye opening.

Unique Retirement Planning Opportunity
So what exactly is so special about being in your 30s when it comes to retirement planning? The unique opportunity you have is simply this - you've got a good deal of financial experience and you still have time to make retirement planning fun. Well, almost fun.
We're going to demonstrate this later on when the TWHN advisor crunches through some numbers. But the fact of the matter is that you should have a good understanding of what it takes to make all your monthly payments by now, and with around 30 years to save for retirement you've still got time on your side. Retirement plans made after your 30s need to be much more aggressive then those made while you're still in your 30s.

Time and Retirement Planning (provided by TWHN advisor)
To demonstrate just how powerful time is for those of you still in your 30s; let's look at the following example. We'll pick the mid-range age of 35 and compare your necessary savings rate to that of a 55 year old. We did this calculation on a retirement savings calculator in case you want to run through some scenarios yourself.
Retirement Savings Example
Current Age 35 55
Desired Retirement Age 65 65

Annual Household Income $60,000 $ 80,000
Anticipated Income Growth Rate 3.0% 3.0%
Desired Income Replacement Rate 70% 70%

Current Retirement Assets $4,000 $4,000
Expected Return on Investments 6.0% 6.0%
Expected Pension at Retirement $33,000 $33,000
Social Security at Retirement $30,000 $30,000

Ongoing Annual Savings Required $5,359 $10,125

In this particular example, the calculator tells us that your household income, if you're thinking about retiring at the age of 65, would be pretty close to $145,000 / year. And you'd like to make around $100,000 a year in retirement - 70% of that value.
To meet that retirement income goal, you'd need to save just $5,359 / year while a 55 year old needs to save $10,125 / year just to make only $75,000 a year in retirement. Keep in mind that the 55 year old is only about 10 years away from retirement, so in this example they'd be making around $107,000 when they reach age 65.
If you don't like our example, use a retirement calculator (found online) and run through the numbers yourself. There is no doubt that you'll come to the same conclusion - saving for retirement now makes things much less stressful on your pocketbook later on.
END CONTRIBUTION

Saving for Retirement in Your 30s

Because you've still got time on your side, your savings strategy is still basically a two option approach - employee sponsored retirement plans and individual retirement accounts.

Employee Sponsored Retirement Savings Plans (according to information that I've been oriented on)
If your employer offers you a pension plan, and if you believe that Social Security will still exist when you retire - which were the assumptions used in the example - then you can probably fill 100% of your retirement income gap simply by participating in and employee sponsored retirement savings plan such as a 401k plan or a 403b. You might also be offered the newly introduced Roth 401k or Roth 403b.
That's right, retirement planning really could be that simple for those of us still in our 30s. With as many as 30 years to save, you don't need to set aside much money each year. In fact, many employers will match their employee contributions, making this an ideal way to save for retirement.

Individual Retirement Accounts
If your employer does not offer you a retirement savings plan, then your next option would be to open an individual retirement account such as a Roth IRA or a Traditional IRA. The current contribution limit for a Roth IRA is around $5,000 to $6,000 per year - which is right around the $5,300 retirement savings goal in our example. If you're married, then your spouse can open an IRA too. (And it seems that women are marrying later also, but that's another post. LOL)

Even if an IRA will not meet 100% of your retirement funding target, don't worry too much. If you're leveraging all the retirement savings plans available to you that's the best you can do right now. The important point here is to take that first step and put that money aside for retirement today. Particularly as females, I believe that we should get into the mindset of leaving legacies and financial security for our children and/or those who will come behind us.

Retirement Planning Strategies in Your 30s (contributed by TWHN advisor)
If you're in your 30s, then there is a good chance you've been exposed to a systematic approach to solving a problem at work. Here the problem is creating a viable, long-term retirement strategy. Our recommendation is take the "plan, do, check and act" approach to solving your retirement planning problem:
Plan - Create a true retirement plan. Take your time and think about things like your "ideal" retirement age. Think about questions and their answers such as - What other major expenses - paying for a wedding or paying for college- that might throw your retirement plan off for several years? Use tools such as retirement calculators to figure out how much you need to save each year.
Do - You're done with the hard part, now all you have to do is to follow your plan. If your retirement plan calls for placing $4,000 into an IRA then, as the saying goes, just do it.
Check - After your plan has been in place for a couple of years, you need to revisit that plan and ask yourself some slightly different questions. Were your original assumptions accurate? Is your salary growing faster or slower than planned? Is your retirement account balance growing as fast as you thought it would?
Act - If your old plan still applies to the current situation, then just keep going. Of course you need to check it again in a couple more years, but if it doesn't need fixing that's great. If you've found that you need to make adjustments, then simply incorporate them into your revised retirement plan.

Be empowered by this information ladies! I'll return for savings for those of you in your 20s.

What's Your Body Type?

Knowing your body shape can unleash a huge amount of wardrobe potential, but how do you do it? TWH has made it easy for you to figure out what body shape you are, and what rules will guide you to wardrobe success!

The Shapes

I think that all body shape rules can be covered by the five basic body shapes of pear, apple, hourglass, petite and athletic/slim. The reason I believe you don’t need 12 or 20 shapes instead is because if you break each of those body shapes up into upper half and lower half rules, you have every base covered.Take a photoYou need form fitting clothes, a white wall and a camera (digital is best). Get changed into an outfit that’s head to toe one colour (dark grey and black work best) and then stand against a white wall, with natural posture and legs together arms out from your sides slightly. Get a trusty friend to take a photo of you and then print it out.Take your photo and cut around your silhouette and then turn it over, that is your body shape.

Simple!

Pear
Your hips and thighs will be the largest measurements, then usually your bust followed by your waist.

Apple
Your measurements will be similar across the bust and hips, with not much difference between your under bust and your waist.

Hourglass
Your bust and hip measurement will be your largest, and your waist measurement will be quite small.

Petite
You could be any of the other measurement combinations; you will be shorter and tend to have broader shoulders. For you it’s more about creating the illusion of height and proportion so mix and match your rules with the other body shapes rules to find the perfect rule set for you.

Slim Athletic
Your measurements will be fairly regular across your hips, waist, bust and under bust. You will also have fairly regular measurements across your mid thigh as well.

In the Matter of Love versus Self

Of course this topic will forever remain a hot and intriguing one as long as the opposite sex exists...Love and Relationship.

So I figured that I would tackle some topics and questions now along with Relationship Counselor Barbara. So enjoy the reader-friendly yet brief blogettes on the matter.

THIS COURT IS NOW IN SESSION...

KNOW YOURSELF:

The first step in finding a balance in a relationship is to figure out what each person truly wants. Sit down and know what *you* want out of the relationship before taking the step of figuring out how the two of you will merge your needs.

FINDING QUALITY TIME:

It´s such a cliche now, but make time for your family and partner. BE there. Sit down and really talk with them about whatever they want to, and then talk with them about the things that are important to you. Share your lives with each other. Most relationships break up because people drift away from each other. Don´t let the drifting start.

COMFORTABLE AND TRUSTING: Consider this ladies.

Sometimes people expect "soulmates" (as often referred) to hit them like lightning out of the blue. They go on looking, while the perfect partner is there with them every day, listening to them, being available, being fully trusting. A partner is first and foremost a best friend. If you have a best friend that is available for more, have you thought about him? It might be time to realize that those traits that make your friend so perfect are the same traits a partner would share.

YOUR CORE VALUES:

People change over the years, some hobbies come and go, and if you choose a soulmate based on something fleeting, it will depart at some point, leaving behind ... what?Figure out what is most important to you. If it´s staying active, as long as you and your partner both share that, you´ll do well. If your partner only likes rock climbing, and refuses to do anything else, what happens when rock climbing years are over? An ability to change and an open mind might be the most important quality in your soulmate.

IN THE MATTER OF "SOULMATES"

In my opinion, a soulmate is someone who has locks that fit our keys, and keys to fit our locks. When we feel safe enough to open the locks, our truest selves step out and we can be completely and honestly who we are; we can be loved for who we are and not for who we´re pretending to be. Each unveils the best part of the other. No matter what else goes wrong around us, with that one person we´re safe in our own paradise. Our soulmate is someone who shares our deepest longings, our sense of direction. When we´re two balloons, and together our direction is up, chances are we´ve found the right person. Our soulmate is the one who makes life come to life.

EXAMINE YOUR EXPECTATIONS:

Many people have very explicit mental images when it comes to a partner. They must look like YYY, have X hair, Y eyes, a Z smile. These mental images probably came from someone seen on TV or a movie, or a mental image formed from someone in your life. I´ve seen many people date a person because they looked a lot like another person in their life - often without realizing it.Really examine your perfect mate´s image. Is it because they will always remind you of someone else? Is that fair, to constantly compare this real life person with someone else, perhaps someone that they can never meet? Instead, focus on the *qualities* of your ideal partner, and work towards that. Looks change, but qualities of personality are more permanent.

I STRONGLY suggest that you consider CHARACTER among all things. The character of a man determines who he is under fire, challenging positions, and the like. It is literally WHO he is and what he's made of. We as women must be careful not to confuse CHARACTER with PERSONAL FLAW. Personal Flaw is what I define as the inadequate, immature and underdeveloped components of a man that he has adapted as a part of him.

Character= integrity vs. Personal Flaw=dishonesty or getting over any chance he gets

Character=correcting a mistake vs. Personal Flaw=making an excuse for the mistake

Character=making a mistake vs. Personal Flaw=repeating mistakes

A man of good Character is not perfect but he is aware, trustworthy, often apologetic when wrong and through integrity he will do what is necessary to make his wrongs right.

Be careful not to confuse the two. This is a great gage for whether you should engage in a relationship with a guy.

Let's Deal With This Now

Okay Ladies, the one stigma we don't want to have is one of creating a cultish gathering of bashing, bitterness and hating. For the single woman, we don't want to seem desperate or hopeless. For the mother, we don't want to seem clueless about our own life's dreams. For the single mother, we don't want to look victimized or abandoned. And for EVERY woman, we don't want to have another defeating year due to procrastination, insecurity or repeated failures to go after the things we so crave and desire.

I often share with people that the time is always now, tomorrow never comes. Maybe your "now" lacks a strategic plan. Maybe your "now" needs mentoring or support. Maybe your "now" is void of inspiration or direction. Maybe your "now" is being arrested by fear.

Before sitting into the driver's seat of fulfilling your destiny, you must first deal with who you are.







As an artist, one of the first images that pops in my head is from the scene of The Wizard of Oz. The revelation that Glenda the Good Witch shares with Dorothy, "...you had it all along"





Now, that's either perplexing or enlightening. It depends on how you look at it. One of the major reasons that we fail ourselves in many of our endeavors is simply because we DON'T truly know who we are. Sure, you may not be or have all you want or intend to, but who are you?


Take 1 minute, pause from reading and ask yourself who you are. Watch the adjectives that you define yourself with.


Pause...Pause...Pause...Pause...Pause...Pause...Pause...Pause...Pause...Pause...Pause...Pause...





Some of the greatest people I know have cut their lives short because, regardless of their gift, they didn't realize who they were. Billie Holliday, Marilyn Monroe, Karen Carpenter, Phyllis Hyman, Donnie Hathaway, Dorothy Dandridge and countless others!





I'm not talking about what fortune, accolades, position or people have defined you to be, but who you have TRULY realized you are. The precious commodity that lies inside of you that makes up who the world sees. Not the comments, compliments or even insults that you've heard about yourself be it yesterday or since your childhood. I'm talking about knowing who you are whether you have a good day or bad day. Knowing who you are whether you succeed or fail at something. Knowing who you are whether you've stayed on track or veered drastically. Who are YOU? It's time to Know who you are.

?HOW?

• From within, meaning revisiting the purpose of your existence. (You were created by Infinite Wisdom, God. He never makes a mistake and your life was truly not an afterthought.)

• Revisiting your strengths (They are what really sustain you thru all of life's rollercoasters)

• Your contributions (Your natural abilities, gifts and talents, your expertise, the very things that people find complimenting about you. )

You are needed in various components of life. You need to find the area that needs you. You need to find the audience that needs you. Your purpose cannot be achieved until you have tapped into the right environment and position that you are to be functioning in. THAT brings fulfillment. At the end of the day you ought to have yourself fully in tact (your mind, your dignity, your faith, your pride) and that is what keeps you going. Realizing those core things. So, whether you fail at a business idea, a relationship doesn't go exactly the way you planned or your child just doesn't seem to understand your decisions you must lie in your bed at night and realize that you are content with who you are because you understand who you are. Understanding who you are will make sense of why you do what you do.

Even though I grew up in a home with both of my parents full of values and skills, it still took me some time to truly tap into who LaShanna was.

Now I realize my importance and necessity to myself and the world. I believe that everything I create grows. What I establish flourishes and I cannot be denied of any good thing that is coming my way because I know who I am.

That is not to say that I don't have my mornings, afternoons, evenings or midnights of slothfulness or darkness. They are just shortlived because I do not allow myself to stay in that place for very long. First of all what happens to me is that the true me from within rises up and overrides the part of me that wants to slum, mope and be distracted.

Why? Because I had to develop the conviction of who I am. I had to change my mindset repeatedly until it became second nature. I had to contantly revisit the 3 bullets from above and allow them to be downloaded into my mind, heart and spirit until I truly knew who I was. As a result, there was no more room for negativity, self-bashing and insecurity.

SO! "Now" is a new moment. What will you do with it? This is not a blog to set you on a competitive path, rather to create a perpetual tide of everything that's RIGHT about you.

Let's deal with this now so that it does not get in your way again of fulfilling your promises and being who you truly are!

A Woman in The City

I won't claim to know it all. I won't try to have all the answers. What I DO desire for you is that through This Woman's Hustle Network, you can find the nuggets needed to do what is needed in order for you to successfully pen every page of your destiny.

I have created a new phrase for myself that says, "I am WonderWoman NOT Superwoman" This simply means that while I am able to do ALOT I realize that I cannot do EVERYTHING. Certainly since we live in a male dominate world that is filled with many double standards we have naturally adopted a determination to succeed at all cost. This is fine, but I implore you to never forget the worth of your femininity while doing so.
Remember the strength of quiet wisdom.
Remember the wisdom in being a planner.
Remember your plans to always take a moment and celebrate yourself.
Remember yourself first in everything you do.
Remember to do what matters most and this will keep you from dangerous compromise.

That list could go on and on....
I would like to welcome you to the quarterly blogging of my company's newest division for women, This Woman's Hustle Network.

Visit often, invite more women and comment when desired!

In It For the Service,

Miss LaShanna D