Priorities & Life Changes

I’ve got some big changes coming up that I’m not a fan of.

One of my dreams is to finally move out of my parent’s house. I was so excited. I had actually found some roommates and I was going to go meet with them and see the room, etc and make my final decision if I was going to move in with them. It was something I was going to be able to afford as well.

But then, I met with a guy in my neighborhood named Jim. He does financial advising for a job. I needed him to explain to me my 401k, Life Insurance, etc. Even though I can’t retire for at least 30+ years, I want to be able to understand my 401k, etc. Jim is the guy to help me.

Two Thursday’s ago, Jim came over to my house and we sat down and discussed my finances. He’s going to help me get out of debt faster, plus build up my retirement so that when I retire in 30+ years I’ll be able to live off of my retirement and not have to worry about how I’m going to survive from day to day.

After sitting with Jim for about 90 minutes, we decided the best way to invest my money is to get a second life insurance policy. I have a life insurance policy through work, along with a 401k and a pension. So, for a minimal fee, that I can afford, I’m going to start putting money in to a second life insurance policy.

I always thought a life insurance policy was just to basically pay for your funeral once you pass away. Nooooo!!! Once I retire, I can withdrawal the money from this insurance policy and live off of that. I won’t be able to touch any of the money in this policy for a couple of years while it builds, but after that, I can touch some of it. Yes, there would be a penalty, but depending on what I’m using the money for (maybe a down payment on a house) it might be worth it, ya know?

I’ve also changed my 401k contribution at work to all be taken out of my paycheck after tax. So, when I retire, I won’t have to pay taxes on the money. That’ll be nice.

Jim is also helping me set aside money for an emergency fund (I didn’t have that) and a “slush” fund for my races, etc.

Now, the bad thing about all of this is…I can’t afford to move out now. I’m really struggling with it. I have to give up things now so that when I retire, I can sit comfortably. I know it’s the best thing to do right now, but it’s still a struggle. I mean, I’m 32, almost 33 years old and am still living at home. Ugh.

But let me tell you, I understand my 401k, investments, etc a lot more now.

I kind of have a plan though. I don’t make a whole lot of money at my job. I’ve tried looking for jobs that pay better. I’m qualified for these jobs, but because I don’t have a degree, they don’t want me. I guess a degree is better than experience.

Ideally I want to be a personal trainer. However, I don’t think that’s going to happen. At least in the near future. My work schedule doesn’t allow me the time to go to the schooling for it. You can’t take online classes to be a personal trainer. Well…you can through some programs, but those programs don’t have financial aid.

So, what I’m thinking of doing is going back to school at like the University of Phoenix or something to get an associate’s degree in accounting. I would be able to take all of my classes online and do it at my own speed. I was talking to a friend that did this and she said if I could handle taking 2 classes a term (term = 9 weeks), then I could get my associate’s degree in accounting in 2 years. So, by the time I’m 35 I would have an associate’s degree. That right there would help me get a better job. Then, if I wanted to pursue a bachelor’s degree in accounting, I could continue on if I wanted to.

So, I think that’s my plan for now. I just need to contact the school and get more information and go from there.

Do you have your retirement set up?

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