As we move through our gradual glide path to eventual retirement, my goal is to show a steady increase in our net worth. I’m not looking to hit home runs. I just want to be sure that when the day come, our nest egg is large enough to support our retirement spending plan.
Archives for January 2013
I like Dr. Mercola’s newsletter because he regularly brings some new information to light about our health, including how to measure it. Today he introduced a simple longevity test that you can take at home in about 30 seconds. Curious? I sure was and I took the test myself. So can you.
At age 62, and being married to someone with significant health problems, I am acutely aware of the lifestyle impairment and expense issues associated with poor health and old age. This is one reason why I am trying to do a better job now with my own health, to avoid or at least significantly delay health-related problems in my own life.
Forbes likes to publish online slide shows in the personal finance domain. A recent slide show topic: “10 Terrible Pieces of Retirement Advice.” I read it and take issue with some of it. Let’s see if you agree or disagree with Forbes or with me.
I am nine days in to my 2013 weight loss program. I have done this before, losing 52 pounds several years ago using a combination of exercise and a daily eating limit of 1,500 calories. In 2012, I gained close to 20 pounds, most of which I attribute to stress eating. (Someday I may write more about that.) This means that have some clothes that do not comfortably fit me. I want to fit in those clothes again so that I do not feel compelled to replace them. I don’t like buying clothes.
I spent some time this weekend looking back at 2012. The number one statistic I evaluate is our net worth because that is what will be generating our retirement income when the time comes. Investment performance is also important but not as important to me as net worth. For example, our retirement portfolio could increase in value by 20% over the year but if we offset that with more debt or spending that depletes our cash, we really haven’t accomplished much. It’s about accumulation.
Once again Congress put a temporary fix on a long term budget problem. The markets reacted positively but with continued uncertainty. Volatility remains and it is still too much for us. We continue to add to our retirement accounts at a significant rate. Therefore, to maintain a positive trend until some reasonable level of market stability is found, we are staying heavy in cash.