Ten Easy Ways to Save for Retirement

The process of saving for retirement can be a daunting task that some people never take the time to plan for. Here is a list that will help you allocate your money for retirement.

1. Contribute to your 401(k) up to the limit and take advantage of an employer match

2. Set up a Roth IRA and contribute the maximum ($5,000 a year in most cases)

3. Invest in Target Retirement index funds that match your age and set the asset allocation

4. Set up an emergency fund for 3-6 months in protection for loss of income

5. Invest in yourself (college degree, personal finance courses, ect.)

6.  Start a side business to increase revenue streams

7. Budget expenses by spending on the things you love and ruthlessly cutting out expenses of things that you don’t need

8. Take advantage of windfalls that come your way and allocate the money wisely

9. Pay off credit card bills that have a ridiculously high interest rate. The money that is spent on interest can be used to fund future retirement

10. Live within your means and find a balance of spending and saving that fits your lifestyle

This list was compiled from a numerous of great investing and finance books that I have re-read recently. Authors of investing books tend to agree that saving for retirement is one of the most difficult and neglected parts of finance for middle-class Americans.

The lack of financial education of the working class can be attributed to not teaching finance in school, but I believe that if someone truly wanted to learn about personal finance, they could find all the information they needed at the library.

The two books that have been most helpful for me in planning for retirement is I Will Teach You To Be Rich by Ramit Sethi and The Bogleheads’ Guide to Investing by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf.

Accountability on Wall Street

In 2008, a financial crisis occurred that inflicted havoc across New York and spread across the United States. The failure of the market system can be attributed to many sources, which include the housing bubble, investment banks, and greedy speculators.

The financial executives at investment banks resisted to correct their actions and led the banks into a momentous downspin. The executives were able to hide any information from the public that would discourage stockholders from investing in their company. From the outside, an investment bank appeared to be a strong and stable investment. This mischievous process lead to illusionary capital that was used to further indebt the companies. Once the banks had to pay their dues, they were not able.

After the deceptive maneuvers were revealed, the amount of debt the banks held were unveiled to the public. The worst part of the situation is that during The Great Depression, people were not responsible for the terrible event. People corrupted the system for their own benefit to maximize their salary, compensation packages, and stock options. The long-term was sacrificed for the short-term.

When the greed and speculative behavior was pinned on the executives, they retreated from blame and left their respective positions. Most were not held responsible for the losses of stockholders and did not face one year in prison. This unjust system of accountability is the aftermath of a dreadful and severe crisis that has left the American people jobless with defaulted mortgages.

I have heard financial pundits claim that the mortgage backed securities and the other fancy derivatives are the main cause of the crisis. They claim that people should not have taken out adjustable rate mortgage loans that they knew could not be repaid. This is an important point and I believe that the mortgage lenders should have understood the ethical consequences of providing a $200,000 mortgage loan to a person without a sustainable income. The executives in power should be held responsible for the predicament and should not blame the crisis on the instruments that they used.

Wall Street is connected globally and holds responsibility to be a system that innovates and appraises rather than corrupts and deflates. In order for the country to develop, Wall Street must be held liable for the events that have taken place.