Unlike many of my 28 year old counterparts, I have been investing in my retirement for several years now. I rode the up and up cycle and then I proceeded to give it all back when the markets busted. While I am 100% certain that social security will be there for me when I retire in 2056 I want to make sure that I have a nestegg to live the high life off of. (Note my sarcasm please!) In the last 7 years we’ve somehow managed to store away roughly $15000. Not bad for some punky kid, eh?
Long story short, when you move jobs your stuff gets messed up. Mine still isn’t right as I’ve moved jobs a few times in the past several years. The last one I am trying to get straight is my pension from Blue Cross. About a year ago I received a note from BCBS that I was due a pension distribution. It turns out I was vested into their pension by a matter of months when I left to enter the ministry.
So I sent paperwork and got paperwork back. In January I thought I had it all taken care of. It turns out that they never wrote a check to my rollover account. So today I faxed over a follow-up note asking where my money is now located. I want my money!
I believe heavily in the realities of compounded interest. Mathematically it just makes sense to invest small portions over the long haul instead of waiting for the big distribution and transfer of wealth when some parent dies. While it would/will be nice if someone in front of me secures my future, I’d like to be a part of doing the same for my children. (It’s not like my folks are rich… But I can see that they each have something that they will pass on to my brother and I. Hopefully it will be more than an unpaid mortgage!) And so Kristen and I plug away and invest where we can.
IRAs work for Kristen and I. I think it has a lot to do with the massive withdraw penalties. I know that some of my friends regularly borrow from their and that there is even some good sense in doing so to buy a house… But we chose to keep ours off limits. Why? Compounding of interest! To stop that cycle is just foolish.
A few weeks ago, our main investment had distributions. It wasn’t much, but it added about 2% to our number of shares in those funds. Each day I keep an eye on good ole TEMFX on the stock market. This is an international stock fund and I’ve been investing in it for some time. We have a target for how much we will invest in it before we lock it away and we are only about 3 months away from realizing that. Next we will focus on a simple stock fund. Yippee! I love US stocks.
More on this in the near future. I’ll keep you updated with the BCBS saga. I want my money!