Is there a topic, subject matter, field of study that you know little to nothing about and like that you know little to nothing about it? I am sure there is because we can’t all be experts in everything. What happens when life circumstances arise that force you to become knowledgeable, possibly even an expert in that field?
I am not a financial guru by any stretch of the imagination. I know how to set a budget, balance my checkbook, and live within my means. I like my company sponsored 401K because I don’t have to think about it. The money is taken out of my check before I see it. It goes to an account I don’t have to manage and it does things I don’t have to understand. Then someday I will be able to live off of this money I didn’t have to deal with along the way. Nice.
Well, I work for an Employee Stock Owned Company. This employee stock is set up as a retirement fund. This is just as hands off for me as my 401K because the company allocates the stock and it sits in an account that I don’t have to worry about until someday when I retire and want to draw income off of that fund. That is how it was supposed to be. My company is in the process of being bought. This is really good news because as an employee owner I will get paid for my shares in the company. This is very exciting. Except now I have to do something with that money.
In the past month I have researched read and asked knowledgeable folks everything I can about retirement funds, diversification, financial planning and so on. This world I enjoyed being ignorant about has now become front and center in my life. I first had to learn what retirement options are out there. I decided an IRA is the best bet. Then I find out there are different types of IRAs so I have to decide which one is best. Then within the IRA you have to decide how you want your money invested. How hands on do you want to be? How aggressive do you want to be? What funds do you like? Which financial institution would fit your goals the best? Oh my goodness my head is going to explode.
This is still good news because my retirement looks better than ever right now. But my here and now is more stressful than ever. This is a huge burden. These are big decisions. There is a lot to learn starting with just knowing the terminology. Then I have to know how to compare the numbers. Then I have to know how to read the funds, what makes them up. I have to be able to find how much a fund costs and what that does to the return on my investment. Did I mention I’m not a finanacial guru? Do I sound like I’m in over my head here? I am excited really I am. I am not complaining about the circumstance at all. I am just a bit overwhelmed at the sudden need to learn an entire field of study in a couple of months time well enough to do the right thing for my future.
The basics of what I have learned is that to touch the money now would be costly in terms of penalties and taxes so first decision — roll it ALL into another retirement fund. 2nd I know I am going with a traditional IRA, continue with the tax free savings. 3rd — I’m still working on the 3rd. Moderately aggressive, possibly totally hands off, split between two institutions or stick with one, when do I plan to retire, how much do I think I will need to retire, will this be enough to hit that goal (no because I don’t know what might or might not happen and the new company’s 401K is better than my current one so I will still be mindlessly saving in that account I don’t have to think about)?
I think my problem is that I don’t like thinking that far ahead in my life. I have never really thought about retirement. I have never had dreams of “someday when I retire.” I have just always seen myself as working. I am single and have to rely on myself to get by day to day so I just figured I would always handle day to day. I don’t see myself ever truely retiring like the American mindset of retirement but I can cut back or find something I am passionate about that maybe isn’t high paying and I still won’t have to worry about making ends meet. I used to plan my future, I used to dream of what down the road would look like. But nothing in my life has turned out the way I thought it would so I stopped trying to picture what I think my life should be and I just wait for God to show me NEXT.
I am thankful for family and friends that are willing to answer questions and share what they know so I don’t have to traverse this decision making process alone. I may not know this stuff but people I know, know this stuff and that is just as good as first hand knowledge to a large degree. Well, I gotta go there is more learning to do.
