Friends --- Here is a letter I am sending out to all Eagle Rock alumni. I had some edresses, but not enough. Please help by forwarding it to ERS alumni you know. Thanks. Dear Eagle Rock Alumni, Happy New Year! And may 2015 be remembered for old friends, new beginnings, and making a difference in this world. One “difference” I ask you to make strengthens your long-term financial security, and I write offering a monetary incentive. Please make the time to read this letter carefully. In mid-2014 I began working with a small number of Eagle Rock Alumni to help them start or enhance Roth Individual Retirement Accounts. The impetus for this was my desire that ERS alumni enter retirement years with “nonstop good income,” to use a phrase I heard recently. The Roth IRA uses after-tax money, builds upon itself via compound interest, and is tax-free when you withdraw funds during retirement. In any job you pay into social security, and your workplace may offer the option of a 401(k) or a 403(b). But these will not be enough to sustain you comfortably in the final thirty years of your life. Instead of standing on a street corner with a cardboard sign that says “Will Work For Food,” my plan is that you live well, enjoy good health, travel, support your grandchildren and continue to make a positive difference wherever you live. A Roth IRA will ensure that. THE GOAL: I want to see all ERS alumni initiate Roth IRAs, so that it becomes the norm at Eagle Rock, just like access to higher education funds for graduates. For my purposes ERS alumni are former students who spent at least a year at Eagle Rock, whether or not they earned a diploma. THE DEAL: I will pay you $100 to initiate a Roth IRA. If you already have one, I will add to it. Simple dimple. THE CHALLENGE (three parts): 1) You will need to RESEARCH Roth IRAs and find one you like. Many Eagle Rockers are using Edward Jones because you need only $250 to start a Roth IRA there, but you might prefer Fidelity, Merrill Edge, Vanguard, Morgan Stanley, T. Rowe Price, Bache & Co. or some other reputable firm. 2) The best time to START is NOW. Compound interest accrues over decades, and your retirement nest egg will grow even more substantially if you start sooner rather than later (p.s.s., below). 3) Regular and consistent payroll deductions are essential. Whether it’s $25, $50 or $100 per month, you will want to PAY YOUR FUTURE FIRST, and sufficiently discipline yourself that it becomes an automatic habit, not unlike the Gate Run on a cold February morning. You do it because it’s good for you and it delivers a long-term payoff. THE TIMING: Neither my generosity nor funds will last forever. I have committed $10,000 to this venture; after that I will assess progress. That means at least 100 ERS Alumni will get a boost in starting or maintaining their Roth IRA. I am not alone in this; some individuals have already helped, and it may be that others will use their assets to assist additional ERS Alumni; I am at work on that angle. My advice---do not wait. The Dow-Jones ended 2014 just under 18,000, and there are many who believe it will rise above 20,000 in 2015 (that’s a potential 10% gain in the next 365 days). Over the next thirty to forty years the market will grow significantly, despite periodic setbacks. This is why you need a savings account as well, so you can put money into your Roth whenever the market goes down. I know it’s counter-intuitive, but if you look at the past 100 years the market has risen steadily, through wars, depressions, recessions and other cataclysmic events. NEXT STEPS: Remember, this is time-sensitive: ACT NOW!!! Research Roth IRAs and pick a firm you like. Go in and have a conversation with that firm (it will be free—they want your money). Get your startup funds together. Let me know which firm you select. I’ll add the $100 to your account. Make sure to add cash monthly. Watch your nest egg grow. With enough time and contributions on your part, you can generate enough to sustain you comfortably in retirement. I invite you to email me or call (970-214-2524) with questions or comments. All best to all of you, Robert p.s. There are some ERS Alumni for whom I do not have contact information. This letter is meant for them as well; please forward. Thank you. p.s.s. This article will help you better understand why you should start your Roth IRA now. businessinsider/compound-interest-retirement-funds-2014-3?utm_content=buffer35858&utm_medium=social&utm_source=facebook&utm_campaign=buffer
Posted on: Thu, 01 Jan 2015 19:13:00 +0000
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