When my eldest sister told me sometime last year that I would need at least $2 million to retire, I was like, seriously? I know she is serious because she is always serious about money. I’m just wondering where she plucked that number from.
What did she base it on?
What kind of insider info does she have on me that I’m unaware of? How would she know what my needs are when even I don’t know what they are? And if I don’t have that kind of money, does that mean I am doomed?
A failure to society?
Money talk – where to park it, what to do with it – is one of my least-favourite subjects, and least understood. I get into a blind, confused rage with all the investment speak (ditto for law and medical speak); I had two friends who understand the lingo better than me sit in on my last health-insurance buy. And it took me three days just to decipher what I get out of it.
That’s why I’m extremely interested in this month’s feature Your Mega Money Guide (pages 182 to 191).
I want to figure money stuff out.
Point 4 says: to make money work for you, you have to have money. Not just any kind of money; it has to be money that you have but don’t need right now.
What if I don’t have that kind of $$? Does this mean I should stop right there, and read Th e Novel Ways to Drink, Enjoy and Make Your Coffee (that’s on page 204) instead? I don’t mind because then I can just retire the thought of retiring with at least $2 million.
Point 8 says: Don’t understand it? Don’t put your money on it. Th at’s good advice because it’s logical.
Then, the rest of it, which is a lot of questions, got me asking more questions.
Q: What are your financial goals?
Me: Is it OK that I don’t have them now, or yet? Is it compulsory?
Q: What’s the rate at which you want your investments to grow?
Me: I’m not sure... what’s reasonable and what’s not?
I need to start thinking in depth about my money. And I shouldn’t put it off any longer if I need $2 million to retire.