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Money maven, Mary Hunt, is back with a new book, “The Smart Woman’s Guide to Planning for Retirement,” to help women prosper financially in the new year and beyond. While the focus is geared toward women, men can also benefit from Hunt’s money wisdom, honed after accumulating more than $100,000 in debt earlier in life; And it took 13 years to erase.
“Do you have a retirement wake-up call?” Hunt asks at the beginning of the book. “I can promise you they get sharper with age.”
Hunt found in a 2012 survey that 92 percent of women of all ages don’t feel educated enough to reach their retirement savings goals.
Saving for retirement requires determination and hard work; And Hunt believes women can be successful. Hunt says, “If we lack confidence, it is because we lack knowledge and desire, certainly not because we lack intelligence and ability.”
Timing dominates all factors when saving for retirement. The sooner you start, the better. But, Hunt stresses, no matter where you are in life, you should start now. “If you don’t start now it’s too late. No matter where you are or how little you think you have, start now. Start today. Save.” Take small steps to generate long term results.
Characteristic of Hunt’s teachings:
retirement savings plan, Hunt promotes a six-step retirement savings plan, which includes:
Create an emergency fund. Also known as contingency fund. Save money for life’s unexpected expenses (car repairs, home repairs, etc.). This money needs to be liquid (readily available within two or three days), safe from erosion (building up in a risk-free savings account) and able to be funded at least in part. At least six months of living expenses in case of job loss or other income compromising event.
get out of debt. Eliminate all unsecured debt (credit card debt, student loans, personal loans). Hunt says they are stealing your future like cancer. Incorporate Hunt’s Rapid Debt-Repayment Plan (RDRP) to eliminate debt.
buy your home outright, Buy a home halfway through your mortgage approval. Make monthly mortgage payments equal to the full approval amount to own your home in half the time. Strongly protect your home equity (the difference between your home’s market value and your mortgage balance). Avoid taking out a home equity loan or line of credit, which resets the clock on a thirty-year mortgage.
Consider hiring a financial planner after debt is eliminated or managed, a respectable amount has accumulated in savings, retirement funds are growing, or an IRA inheritance or other cash benefit appears.
Hunt describes three types of financial planners:
- Commission based. This planner charges fees by selling investment products, not by time. He earns commission on those sales.
- fee based. This planner works for a fixed fee or an hourly fee. Fees are disclosed up front and the planner is a Registered Investment Advisor (RIA). They are required by law to meet fiduciary standards, making them responsible for putting the best interests of their clients first.
- combo. This planner is a combination of the first two. Clients pay a fixed or hourly fee and planners earn commissions when clients buy financial products based on their recommendations.
Hunt suggests choosing a financial planner with at least five years of experience. Make sure they act in your best interests, and can explain financial concepts at your level. Be wary of any planner who claims to beat the market. Lastly, collaborate with a planner; Still make your own investment decisions. Hunt underlines that, “The primary allegiance of an advisor or planner will be to the hand that feeds him. It is simply human nature.”
Hunt educates in a conversational tone, avoiding jargon, charts, and mind-numbing data, which makes for an engaging read. A Christian, she teaches faith-based money management. Hunt believes that God is the source of all blessings in life including wealth. An employer, spouse, investment, trust account, parent or any other entity are channels through which money flows, but not the ultimate source. She is making proper preparations for retirement without passion; and trusting God for the result.
While having a retirement nest egg is important, Hunt reminds readers that there is more to life than money. Health, spirituality, nurturing relationships, being active, continuous learning and volunteering are some of the attributes of a balanced existence.
Decade-by-Decade Financial Planning, Five Essential Tools for a Money Management System, Investing Basics (Monthly Contributions (Out-of-Sight, Out-of-Mind), Reverse Mortgages, and Avoiding Paying Parents) automate all payments for their children’s college education (not required), among other money-saving/building topics addressed in the book.
Anyone committed to improving their financial fitness in 2014 will reap life’s treasures, beyond the confines of cash, by inheriting Mary Hunt’s money practices.
To establish your baseline financial standing, and/or to monitor your progress, order your free credit report from the Big Three credit companies: Equifax, Experian, TransUnion, visit: annual credit report,
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