Topics We Touched On:
1. Setting a money date:
- IXL has financial literacy sessions for kiddos and was recommended by a mom.
- A mom helps her child separate any funds received into giving, save, and spend categories.
- I couldn’t remember the book last night, but I read a great book on training kids with money called, The Opposite of Spoiled, by Ron Lieber. (It’s probably in the library.)
2. Budgeting tips:
3. Figuring out your retirement number:
- Estimated monthly expenses: How much you’ll need to live on after your W2 income. Don’t forget to include Social Security or pension (if you’ll get one). My example, I want to continue to travel and plan to have my primary mortgage paid off. So my monthly expenses minus social security would be $3000/month
- Annual expense would be $3000 * 12 = $36000
- Dividing by (.05 or 5% average annual return) = $720,000.
- Learning to invest in stocks and bonds in addition to traditional, employer-sponsored retirement plans
- Investing in income-producing real estate
- Starting a business