The BIGG Successs Show
How to Have the Discipline to Invest Even if You Don't Have the Discipline to Invest
Simple steps to build your retirement nest-egg. Read our show summary at biggsuccess.com.
Welcome to the Big Success Show! Today, we'll discuss how to have the discipline to invest, even if you don't have the discipline to invest! The Big Success Show with George and Mary Lynn. Sounds like you're talking in circles, Mary Lynn. But it's true, isn't it, sometimes? Well, we're going to talk about how you can do it today. You know, this is a result of a show we did a while back where we discussed how to turn a $2300 refund check into over $723,000. Yeah, and we do have a link to that show on our blog today at BigSuccess.com. And of course, what we said was that you could invest your refund check this year and then adjust your W4 so that you don't get a refund next year. But what you will get is extra money in every paycheck. All you got to do is invest that money and you'll begin building your retirement portfolio. You make it sound so simple, George, but that's what prompted a question from Stan. He says he'd love to take her advice, but he knows that if he got extra money in his paycheck, he wouldn't be disciplined enough to invest it. So his big challenge to us is, is there anything he can do to make sure that he does invest that money? Well, I'd have to say, Mary Lynn, I think Stan speaks for a lot of us. Yes. When it comes to having this discipline to invest. But here's the good news. The secret is that you don't have to have the discipline to invest. Huh? You just have to have enough discipline to set it up so you automatically invest. The best way to invest your money for any of us is to do it before we see it. So start by investing more in your employer's retirement plan, such as a 401k or 403b. Max that out first before you consider any other alternatives. Now, when we say max out, we're not talking about just taking it up to the limit that your employer matters. I thought you were talking about my credit card. What we're talking about is taking it all the way up to your individual limit. Yeah, you won't see the money at all, so you won't miss it. This money also comes out pre-tax, so you're investing it without paying any taxes on it now. Yeah, and that's a big advantage, but don't think you're getting away with something. Man, the government always gets it, right? Oh, Sam always wins. You will have to pay these taxes when you take the money out. However, in all likelihood, you won't be working anymore when you do, so it's likely that you'll be in a lower tax bracket. Now, Mary Lynn, you know, some financial planners are actually starting to rethink this whole pre-tax investment thing because a lot of people are actually making more money after they retire because they keep working and they have a fairly large portfolio. But the thing is, when you're just starting out until your retirement portfolio really starts growing, you're probably okay to do what we're saying. When your portfolio reaches a fairly decent level, then go ahead and consult with a certified financial planner. Coming up, what to do if you still have extra money to invest? Today, we've been issued a big challenge by Stan, who's responding to a show we did about investing your paycheck. And he said that he'd find it challenging to have the discipline to do that. So we've already told him to take the money in his paycheck and invest it in his 401k. But what do you do if you still have some extra money after you've done that? To get ready for your next move, make sure that your paycheck is direct deposited into your bank account, all right, then have an automatic deduction into an investment account. Yeah, that investment account very well may be a no-load mutual fund, like one from Vanguard or Fidelity. The great thing about this is 100% of your money goes into your account, not into someone else's commission check. And a lot of us think nothing of having payments like our mortgage or a car loan and bills like the cell phone, the utilities, the cable, automatically deducted from our bank accounts, right? But for some reason, we hesitate to set up the most important payment of all the one to ourselves for our future. Yes, and that is the most important payment to make, isn't it? Yes. And so you see, Stan, lack of self-discipline isn't really a problem at all. Yeah, we hope this helps and Stan, thank you so much for sharing your big challenge with us. If you have a big challenge, we can help you out with contact us through our website at BigSuccess, that's B-I-G-G Success.com. It's also where we have a written summary of today's show. And let's get our big quote for the day. Our quote today comes from an unknown author who said, "Life at any time can become difficult. Life at any time can become easy. It all depends upon how one adjusts oneself to life." So take it easy and make it easy to retire on easy streets. And next time we'll be live from the Big Derby. Yes! So check in to see which horse gets the big payoff. Oh, I'm placing my bets now, until then, here's to your big success. The Big Success Show at B-I-G-G Success.com. [BLANK_AUDIO]