| Could the person in this story be one of your | | | | today, my guess is that you will need to have |
| salespeople?A 39-year-old salesperson recently | | | | approximately $1 million invested by the time |
| told me that he earned a six-figure income last | | | | you're 65.""Wow. I never dreamed that I'd need |
| year. He said that he had never dreamed that he | | | | that kind of money just to earn $5,000 per |
| would earn that kind of money in a single year. | | | | month.""One thing we haven't factored in are your |
| As a reward to himself for posting such a | | | | social security benefits, but even with social |
| successful performance, he purchased a new | | | | security, you need to get started putting some |
| truck, a bass boat and went on a golfing trip to | | | | money away, wouldn't you say?""There's no |
| Cabo San Lucas in Mexico. The salesperson is not | | | | doubt about that. Who can help me design a plan |
| married.As he and I began our interview, I asked | | | | that will guarantee that I'll not be destitute when I |
| permission to ask a few questions about his | | | | finally do retire?""I'll give you the names of two or |
| financial situation and he agreed."If you don't mind | | | | three financial planners. I suggest that you |
| my asking, how much of last year's income did | | | | interview each of them and select the one you |
| you invest?" I asked him."I know I need to begin | | | | feel most comfortable with. Will you do that?" |
| saving for retirement, but so far I've not invested | | | | "You darn right I will. Thanks for opening my |
| any at all. Right now, I have only about $5,000 in | | | | eyes."OLD AND POOREarly in my career, my |
| a money market account.""How much monthly | | | | boss taught me the power of compounding; that |
| income would you guess you'll need to retire | | | | is, the power of investing a portion of my income |
| comfortably?""I really haven't thought about it | | | | each year and allowing the compounding effect to |
| much. Right now, I spend $6 - $8,000 per month, | | | | build a small nest egg into enough to take care of |
| depending on how much I earn. So in retirement, I | | | | me in retirement."Being young and poor is not so |
| don't know, I'd say at least $5,000 per month.""At | | | | bad. You've got the rest of your life before you. |
| what age would you like to retire," I asked."I | | | | But being old and poor stinks," he told me. It is |
| enjoy what I do, but I also enjoy playing golf and | | | | totally up to you and the amount of discipline you |
| bass fishing. If I had my way about it, I'd retire no | | | | have in your life to invest a portion of what you |
| later than at 65.""That gives you, let's see, 26 | | | | earn. In the USA, no one with financial discipline |
| years to save enough to meet your | | | | should ever be old and poor."DO YOUR |
| $5,000-per-month income objective, right?""Yeah, | | | | EMPLOYEES A FAVORInvite a financial planner |
| that sounds right. So how much do I need to | | | | one who is good on his feet |
| have in the bank to have $5,000 per month to | | | | to present a short seminar for your employees. |
| spend by age 65?""Do you mean before taxes or | | | | Do your part to teach each of them how easy it |
| after taxes?""I'd need to earn $5,000 after all | | | | is to become financially independent IF they start |
| income taxes are paid.""Well, based on history, the | | | | early enough, and how difficult it is to reach their |
| stock market has averaged somewhere between | | | | financial goals if they wait to late.Bill Lee is author |
| 10% and 11% in annual growth. And assuming | | | | of 30 Ways Managers Shoot Themselves in the |
| that income tax rates stay the same as they are | | | | Foot ($21.95) plus $6 S&H. |