31% of Americans Have No Retirement Investments – Tips for Starting

Portrait of Smiling Family on Steps“Nearly a third, or 31% of U.S. adults said they had no savings or pension to help them afford retirement, according to the Federal Reserve Board.”  – CNN Money

Extended family sitting outdoors smilingI want to say that I’m surprised, but after working with students, employees and retired folks for the last seven years ….  this is what I already know. If you’re part of this group, you’re going to be in for a HORRIBLE surprise come “retirement age”. Either you won’t be able to retire at all or the money from Social Security will only be enough for you to afford a room in your kid’s house and no fun, but it’s not too late. Here are my tips for creating a retirement plan and sticking to it … at any age.

0 – 16

Think it’s too early to start thinking about your child retiring? Not so. Though you can’t take advantage of tax-deferred plans like IRAs (you’re kid probably has no earned income) you CAN put a few dollars away every month in a regular investment account, buy individual shares of stock or purchase savings bonds. Let’s assume that you contribute $50 per month (or $600 per year ….  birthday … Christmas …  ) to any one of these strategies and that the investment earns 2% per year on average (some years more, some years less). By the time that child is 67 years old, that investment would be worth $84,584.31. Imagine how much money it would be worth once your child started contributing too.

16 – 24

By this time you are probably working, but not making much money. You might think that $50 per month won’t amount to much anyway so why bother? Because that $50 per month, or more, could end up being $432,992.84! Once you’re working you have earned income and can take part in wonderful retirement investing plans like 401k/403b, if your job offers them, or Individual Retirement Accounts (IRAs), if your job doesn’t. You put in $30,600 over your working years (16 to 67) and you’ll end up with a half-million dollars … easy! Read more about this in my book 10 Things College Students Need to Know About Money.

25 – 40

Yes! Now, we are in the prime earning years! Not only do you have a job, you probably have a half-way decent job. No more ramen for you! It’s time to take it up a notch. If you have been investing (since you have that good job) increase that contribution. If you haven’t begun FamlyBlackcontributing yet, it’s time to start.

You might think that you don’t have any spare money to invest or you might not know how to invest (read Money Matters: The Get It Done in 1 Minute Workbook), but it’s easier than you think, especially if your company offers a retirement plan with a company match. On your own, the average American can find $50 worth of spare change every month. PLUS, think about the ways that you waste a few dollars here and a few dollars there every month. Assuming a monthly $50 investment, starting at 30 years old, into a tax-deferred retirement account could still net you $136,725.48. Bump that up to $75 per month and you’ll be looking at $205,088.22. Not too shabby!

40 – 67

If you’re here then you are squarely looking at retirement …. perhaps. In Money Matters: The Get It Done in 1 Minute Workbook I have a worksheet that asks you to take a look at where you are and where you’d like to be. If you’re path is not heading in the direction you’d like it’s not too late to change.

You’ll need to do a little more to catch up, but it’s not impossible. A monthly $200 investment with an 8% return could turn into $229,797.95. Use the Social Security Administration’s estimator to find out how much you’ll get per month once you’re retired. You may find out that you need to work a few extra years. You may find out that you’re fine. Ether way, knowing is better.

If you haven’t begun investing for retirement yet, don’t be downhearted. The time is now. Don’t wait another day. Contact Human Resources at your job and find out how to start investing. Find a fee-only planner and take a comprehensive look at your financial situation. Buy a book to learn the basics and get started.

Working hard won't get you what you want. Working smart will.

Working hard won’t get you what you want. Working smart will.

It begins now.

 

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com

Money Mistakes on Retail Me Not

The dumbest thing Shay ever did with money is a story told at RetailMeNot.com.

Financial Education Speaker & Author Shay Olivarria’s whole career has been built on sharing the mistakes she made with others in hope that those mistakes could be avoided by others. Now, she shares the biggest money mistake of her life with Emma Johnson at Retail Me Not.

Smart people make dumb mistakes all the time. That’s why they’re smart—they learn from their mistakes. Even smarter? Learning from other people’s mistakes! Instead of screwing up your own finances, check out these doozies committed by financial professionals.

Read the article here http://theinsider.retailmenot.com/money-lessons.html

Camp Miss Independent

Camp Fire USA Executive Director/CEO Sandra Rutherford with SCE Federal Credit Union Foundation representative Shay Olivarria at Camp Miss Independent.

Saturday, April 21st was the Second Annual Camp Miss Independent hosted by Camp Fire USA. The SCE Federal Credit Union Foundation supported the event, so Shay Olivarria delivered three 45- minute presentations on personal finance topics including:

Click to visit SCE FCU

Financial Goal Setting (creating S.M.A.R.T. goals)

Paying Yourself First (Emergency Funds and Retirement Accounts)

Understanding Financial Institutions (Credit Unions, Community Banks,and Banks)

Camp Miss Independent is a two-day event at Camp Nawakwa in the San Bernardino mountains. Students come up Friday night and and stay overnight until Sunday morning. Speakers cover personal finance, dressing for success,financial aid, and college life. Students were excited to receive a special offer from SCE FCU.

SCE Federal Credit Union Foundation representative Shay Olivarria facilitates a discussion the difference between credit unions and banks at Camp Miss Independent.

Students really enjoyed Shay’s presentations. They said they learned:

“The difference between banks and credit unions”

“I can start saving money now”

“Start saving around $50 a month and I’ll have lots by the time I’m 30 years old. So save, save, save!”

“Retirement fund and realizing that I NEED to save money if I want to have a comfortable lifestyle”

“Debit cards do not effect your credit”

“Setting short & long term goals …just setting financial goals in general”

“The eye opening information makes me realize that I need to make smarter decisions”

“Saving money but also knowing how to use it”

I had a great time working with the students that attended Camp Miss Independent 2012!

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com.

ACS Financial Education Event

 

Shay Olivarria was the keynote at the ACS Financial Education event in New York City April 11, 2011. The event was held at The Children’s Place on 1st Ave and 28th. Everyone had a great time! There were some great vendors at the event:

CheckSpring (community) Bank – They are a local community bank that’s mission is to provide financial services to the local community. They have branches in Brooklyn, Manhattan, and the Bronx.

Department of Consumer Affairs – They have loads of good things going on, but the thing that really stood out was the Safe Start Program. If you can’t open an account at a financial institution because you’re on ChexSystems you might be able through this program. Through the Save USA Program you may also be able to earn $500  for letting your tax  return grow in an approved financial institution.

Henkels & McCoy – They provide job services to 17 to 21 year olds that are not enrolled in school.

IRS – Darrell Weinberg talked about free  services in the city. Did you know you could get your taxes done for free.

SBA – They were on hand to answer any questions about starting a small business. Check them out if you’ve ever considered starting a business.

Candi Sparks was also there. She wrote a book called Can I Have Some Money? (Volume 3) Max Gets It! Pick up your copy for $10 on Amazon.com.

 

Need a speaker for your next financial education event? Book Shay Olivarria! Visit www.BiggerThanYourBlock.com to watch videos, read testimonials, and buy copies of 10 Things  College Students Need to Know About Money, Money Matters: The Get It Done in 1 Minute Workbook, and All My Mistakes.

Shay on CU Broadcast

CU Broadcast Logo

Watch the video here

I’m so glad that I had a chance to sit down and talk with Michael Lawson from CU Broadcast. He interviews awesome people involved with credit unions across the country, so I’m honored that he wanted to interview little ol’ me!

We talked about why I became a financial educator, why credit unions are awesome, and how my two books “10 Things College Students Need to Know About Money” and “Money Matters: The Get It Done in 1 Minute Workbook” are helping people across the country.

Click here to watch the interview.

Interview w/ CU Broadcast

I just finished my first interview with Mike Lawson at CU Broadcast. We talked my work teaching financial education to youth, my partnerships with credit unions around the country, and how the credit union industry can continue to grow and reach out to more members. We even talked about why I named my company Bigger Than Your Block and why I wrote “10 Things College Students Need to Know About Money” and “Money Matters: The Get It Done in 1 Minute Workbook”.

I had a wonderful time being interviewed and I’m looking forward to seeing the interview posted on CUBroadcast.com. Until then, take a look at the other interviews Mike has conducted with credit union industry professionals across the country.

Credit Union Times

You guys know how much I respect and appreciate the work that credit unions do, right? Well, I’m honored that the Credit Union Times has included me in a story about getting students engaged in financial education. Whoo hoo!

Read “Pop Culture and Field Trips Drive Home Personal Finance Lessons“.

“So many of the financial education courses focus so much on the theory and academia of it that kids just shut down,” said Shay Olivarria, a credit union board member, speaker and author of 10 Things College Students Need to Know About Money-Small Changes Make a Big Difference.

“Instead of telling them about a bunch of terms, present the information from where they are at. Otherwise they’ll just tune you out because they’re thinking, ‘You have no idea of the life I lead,’ and that doesn’t make them want to save.”

Read the full article here.