11. Invest in Retirement

Ready to invest? You are freaking rocking it!

If you’ve reached this point, that means you have paid off all your consumer debts, you’ve saved up money in your emergency fund, and now it’s time to invest for your future!

This is my absolute favorite step, but it can be the most daunting for some people.

Truthfully though, investing doesn’t have to be complicated.

Do you have access to a 401(k) or a 403(b) through work?

Do they match your contributions?

If so, that’s a great place to start!

If you’re uncertain of what to invest in, you could just do what I do (which many believe is the best way to invest…and that is to do it simply):

Find a fund that tracks along with the stock market as a whole – typically called something like an S&P 500 Index Fund. The fees are low and the returns are typically 7-9% a year (as an average – some years may lose, but other years may earn 20%)!

Don’t have a 401(k) through work?

Then perhaps you want to invest on your own.

Check out Vanguard!

They have a great assortment of funds that track the overall stock market. Personally, I’m investing in VFIAX and it has been doing fantastic!

Beyond this, if you want to invest further, I’d suggest that you either invest in your own business, or put some money into real estate!

Check out the articles below for more information on investing!

Questions about Step 11?

10 Comments

DerekModerator
March 5, 2021 at 12:14 pm
This is IMPORTANT!

We’re stocking up our retirement with 15% of our earnings each year (even more if you count the rental income).

If you ignore this step, you’ll almost certainly be dreading life in your later years.

Are you investing in your retirement??
- Reply
- Link
- Dara
  March 5, 2021 at 11:46 pm
  I definitely take advantage of my employer’s matching and I always try to max out my retirement contributions every year. It’s definitely worth it to start at an early age while you are young and not even thinking of retiring any time soon.
  - Reply
  - Link
  - DerekModerator
    March 6, 2021 at 8:14 am
    Absolutely! I never thought I’d have $250k+ in my retirement in my 30’s! But that’s what happens when you start early and stay consistent!
    
    Reply
    Link
Chioma
March 13, 2021 at 11:05 am
This should be screamed from the rooftops.Having a retirement fund is the key to a peaceful and healthier life in old age.At old age working to make money will be super stressful.so one needs a cushion to live comfortably in old age.This is really important.
- Reply
- Link
- DerekModerator
  March 13, 2021 at 8:46 pm
  To live comfortably AND to afford all of your medications and prescriptions needed to stay healthy and active! Without the proper investments, you’re doomed to a low-cost, unhealthy lifestyle in your old age.
  - Reply
  - Link
- Flax
  March 20, 2021 at 9:42 am
  I agree, this should be screamed from the rooftops. IMO, people don’t do it because they think they don’t have enough to invest, or it’s too late. But it’s important.
  - Reply
  - Link
  - DerekModerator
    March 20, 2021 at 10:12 am
    True, but it’s amazing how much just a small contribution each month can turn into! Great point, Flax.
    
    Reply
    Link
carlyn
March 20, 2021 at 2:09 pm
For those of us nearing retirement, who have not saved enough, continuing to invest is very worrisome. But, if we don’t do it inflation will eat our lunch!
- Reply
- Link
- DerekModerator
  March 21, 2021 at 9:10 am
  Absolutely! You just have to think, if you’re nearing retirement (say, age 65), how many more years does your money have to last? 20 years? 30 years? Maybe more? You HAVE to invest!! Just do it as wisely as possible, and always be sure you understand what you’re investing in.
  - Reply
  - Link
Tracy G Patterson
March 20, 2021 at 6:50 pm
Derek,

I enjoy reading about investing. Your newsletter is a favorite.

Fortunately I don’t have consumer debt. I have an emergency fund. I contribute to a 401k, traditional IRA, Roth IRA and Index Funds. By the time I retire I will be a multi millionaire which is amazing for someone that works a 9-5 job.
- Reply
- Link