5 Money Moves That Will Help You Retire Early

Do you really want to work until you're 70? Of course not.

I would imagine that's true for a lot of us out there. However, we're basically saying to ourselves we're never going to retire based on the actions we take with our money.

There are people out there who still don't even put money aside for retirement -- even when their company matches up to a certain percentage.

That's free money being squandered each pay period.

I say it's time to put a stop to this money madness once and for all.

Fortunately, the fine people at Kiplinger's agree with me here.

In their February issue, Kiplinger's discusses some interesting investment options for anywhere from $1,000 to $100,000, the more common money conflicts in marriages today, and why millennials should waste no time in starting to invest.

Kiplinger's Personal Finance Senior Editor Eileen Ambrose and Ryan Ermey, a staff writer with Kiplinger's, were kind enough to share some insights into these articles. Plus, I was privy to some interesting investment ideas that didn't make the cut for the February issue. I think you will be intrigued by what they have to say and will definitely learn a thing or two in the process.

Money is a conversation we should all be having.

To this day, I still can't believe that money is such a taboo topic in today's world. Granted, I suppose that comes with the fact that I've been immersed in the personal finance world for about 10 years or so.

Then, why do we cringe when people start talking finances?

"We don't grow up talking about money," Ambrose explained. "Americans think it's rude. It's a very emotional issue for people because it means having control and power."

I'd say we're doing ourselves a great disservice by not making it a priority.

We may have a lot less issues with consumer debt if we spoke as freely about our finances as who won whatever sporting event was held the night before.

Ambrose would agree with me. "While people share many things on social media, money is something people still don’t discuss," she explained.

Have a discussion about finances before getting married.

This lack of communication with regards to money spills over into our marriages.

After all, if the culture doesn't talk about it, how likely are we to talk about it to our potential spouse? If it's so taboo, chances are it's not something we're bringing up on the first date let alone after we're engaged.

Failing to have that discussion, however, is a real hindrance to any marriage. 

After all, as this CNBC article points out, money is often the leading cause of stress in any relationship.

Unfortunately, that doesn't mean people are having the money talk before tying the knot.

"When you're falling in love, money is not usually brought up," Ambrose said. "People assume they're on the same page. It's when they're handling the finances together that they then discover they're not."

In the money conflicts in marriage article, Ambrose talks about a couple who neglected to have a real talk about finances before their wedding in 2004.

She explains that "they didn’t talk numbers before the wedding, and when they added it all up later, the Chicago newlyweds had a shock: Together they owed $60,000, most of it in the form of student loans."

For my wife and I, it was when we made the financial chats a priority that we did the best with our money and followed our budget. When we failed to have those regular discussions, we easily got into debt and spent money without thinking. Keeping the lines of communication open before and after your wedding day is the key.

Time is your most precious asset.

This one is important for those reading this who are members of the millennial generation.

Basically, when it comes to investing, time is one of the most crucial factors.

The younger you are, the more you have compounding interest working in your favor.

So, it's to your benefit to start early. 

"Every second you wait to take the leap, you’re giving up one of your greatest assets as an investor: time," says Ermey in his piece on millennial investing.

Ermey acknowledged that many of the millennials he speaks with are hesitant to get into the market.

"A lot of us came of age and started our professional lives during the financial crisis," he said.

"So, it's front and center in our minds when it comes to investing their money."

Fortunately, Ermey has a simple remedy for those who may be still a little apprehensive about investing.

"Take advantage of the any employer match," he explains.

"Make sure you're getting the free money they're offering you. For those who are scared about investing in the wrong thing ... it's the greatest thing in the world to be invested in funds through the workplace."

Consider all investment options and just be open to opportunity.

What are your thoughts on investing in India? Well, if you have $1,000 available for investing, it just might be the place to put some money.

"A recent Harvard University study predicts 7.7% annualized growth in the country’s gross domestic product through 2025," according to an article in Kiplinger's February 2018 issue.

"To get a piece of India’s expansion, stash $1,000 in iShares MSCI India ETF, which invests in large and midsize firms, and hold for the long haul."

Another suggestion from Kiplinger's -- if you have about $10,000 to spare -- would be to invest in a ready-made portfolio of technology stocks.

The article explains that the "Ready-to-Go Technology portfolio at brokerage Folio Investing gets you actual shares in 30 firms" and includes the likes of Facebook, Google, and Apple. While your $10,000 won't buy you full shares of the stocks, "... Folio pools customers’ orders, allowing it to sell you fractional shares. You can also choose from more than 160 other ready-to-go portfolios, or build your own."

Some interesting ideas Ambrose told me that didn't make it into the February issue included immersing yourself in a country to learn a language, taking a culinary tour of other countries, and even starting your own brand of wine. Now the entrepreneur in me was really curious about the last one, so here's what she had to say:

At the Wine Foundry in Napa, for instance, you can describe the aromas, flavors and textures of the wine you want to create and the company does much the rest. It costs $5,200 to $20,000 to produce a barrel (300 bottles) depending on the grapes and other factors. The Foundry can also handle the wine’s licensing and compliance paperwork for a fee.

Educating yourself is truly the greatest investment you can make.

As with anything in life, it's all about the time you put into it. You're not going to be a great investor if you sit on the sidelines and do nothing. So, it's important -- especially for those of you who are more risk averse -- to educate yourselves about the markets.

A great example of how to learn about investing is Ermey.

"I learned on the fly with this job," he explained to me. "I was an English major and so I have no education in finance."

So, how has he become so knowledgeable about the investing world? "Reading has made me into a savvy investor," he said. Ermey also recommends that if you want to learn "what it is a fund is doing on the data side," to check out Morningstar.

And for the basics on retirement vehicles like the 401(k) and Individual Retirement Accounts, or IRAs, to check out Investopedia.

What all of this comes down to is having a conversation.

Talk about money all you can. That's how we learn and help each other. On the bright side, millennials already seem to be doing this.

And if Ambrose has anything to say about it, things will keep trending in that direction for years to come. "Millennials are much more open about their finances," she said. "If we continue this for more generations down the road, the mystery will about finances will disappear."

For our sake, let's hope she's right.

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