While at a graduation party this weekend, I was chatting with a friend I had not seen in a while. Like me, he is self-employed. I asked how his business was going. He was a bit hesitant, finally stated that things had slowed down, but he was ok with that, and he is looking toward retirement. This friend is in his very early 60’s, has worked hard his whole career, and is a bit burned out of his industry. He had done a good job reducing his debt, but was not as comfortable on the saving side. He mentioned that his Dad had lived to 93 and that he was sure he did not have 30 years more of savings. I wondered to my self why then was he thinking of retirement now? He had taken care of one of the items necessary to set him up for a perfect retirement; he got rid of his debt, but there are two more essential items that need to be taken care for a perfect retirement. Here they are:
Save for retirement:
I always like to plan for my clients living 25 – 30 years in retirement. This requires saving in some type of retirement plan from the very first job. I always encourage saving the most that you can comfortably save in your pre-tax retirement plan.

Have an emergency fund:
I feel that having at least 3 months of income in a savings account is a good marker for an emergency account. This should be in a savings or money market account. You will not earn much on the account but the funds will be liquid for any type of emergency you may face.

Once you have gotten rid of your debt, saved for emergencies and your retirement, the only thing left to do is enjoy!

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