I have a friend who is putting nothing into retirement with the exception of her 401K. She has a pretty decent savings account that she earns a laughable amount of interest on. I keep trying to get her to put some of that money into investments so it can work for her. She likes seeing it in her savings account though and she needs to be ready to take that step. I can't force her. I really love that a lot of my secondary investments get taken out pre-tax. That means I never even see it on my bottom line when I get my check. Once you get in the habit of it not being there, you don't even miss it.
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Inflation in the US in February: 7.9%
Hope she is getting more than that in interest!
This means that if she has 100K, she will effectively have 92K of today's buying power next year. What a deal! I know you know this, but just in case someone reading doesn't ;)
This is the trick for most I think - out of sight, out of mind.
Yeah, no problem. Thanks for the tip. I am going to be spending some time with her and her husband in the next week, so maybe we can have a conversation about it again and I can point this out to her.
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It is weird to talk about money with friends - but I am getting used to it :)
I am pretty open with people I am comfortable with and I feel like I have some good wisdom to share. I have been deep in debt and brought myself out of it to the favorable position I am in now. If I can help someone avoid my mistakes all the better.