Ari Baum, CFP®
Imagine stepping into a time machine. You’re whisked decades into the future and come face-to-face with your retired self. What would they say? Would they thank you for the decisions you’re making today, or would there be a list of regrets they wish you had avoided? Thinking about your future self can provide valuable insights into the steps you should take now to secure financial stability, peace of mind, and a fulfilling retirement.
Lesson 1: Time Is Your Most Valuable Asset
One of the first lessons your future self would likely emphasize is the power of compounding. The earlier you start saving and investing, the more time your money has to grow. For instance, if you invest $500 a month at an average annual return of 7%, it will grow to $900,527.30 in 35 years. Wait just 10 years to invest, and that same $500 monthly grows to only $405,035.85. Starting early isn’t just important – it’s transformative.
Your future self might also remind you that time isn’t just about investments; it’s about life. Retirement isn’t merely a financial milestone – it’s a chapter filled with memories, adventures, and moments. The financial choices you make today buy you freedom to enjoy those moments tomorrow.
Lesson 2: You Can’t Save Your Way to Wealth—Invest It
While saving is essential, your future self knows that saving alone is not enough to keep pace with inflation and rising living costs. Money sitting in a savings account earning 1% interest (or less) loses purchasing power over time. Investing in a diversified portfolio of stocks, bonds, and other assets is how you build true, lasting wealth.
Your future self might say, “Don’t be paralyzed by fear or indecision.” Market volatility is inevitable, but history shows that long-term investors tend to be rewarded. Staying invested through market ups and downs can lead to greater wealth than trying to time the market.
Lesson 3: Health Is Wealth—
Plan Accordingly
As your future self reflects on retirement, they may stress how interconnected health and wealth truly are. Medical expenses can be one of the largest costs in retirement, and without proper planning, they can derail even the most carefully constructed financial plan. Long-term care insurance, a health savings account (HSA), or simply prioritizing a healthy lifestyle today can pay dividends in the future.
Regular exercise, a balanced diet, and preventive healthcare are as much an investment in your future as any financial decision. Your future self might say, “Stay active, because the true joy of retirement isn’t just financial security—it’s having the health to enjoy it.”
Lesson 4: You Need a Purpose Beyond Money
It’s easy to focus exclusively on the numbers – 401(k) balances, stock market returns, and withdrawal strategies. But your future self might remind you that retirement isn’t just about financial security; it’s about finding purpose and fulfillment.
Many retirees struggle with the transition from work to retirement. The loss of a structured routine or professional identity can be unsettling. To combat this, your future self might encourage you to think beyond your career. What hobbies, causes, or relationships bring you joy? Investing in those areas now can help ensure a fulfilling retirement later.
Lesson 5: Debt Is a Silent Thief
If your future self could rewind time, they might urge you to address debt as early as possible. High-interest debt, like credit cards or payday loans, erodes your ability to save and invest. Even “good” debt, like a mortgage, needs to be managed carefully.
A retiree carrying significant debt faces a double-edged sword: reduced cash flow and increased stress. Your future self might say, “Eliminate high-interest debt, and be strategic about low-interest debt.”
Lesson 6: Don’t Underestimate
the Power of Professional Guidance
Your future self has likely seen many people make costly mistakes because they didn’t seek professional advice. Whether it’s tax planning, estate planning, or investment management, having a trusted financial advisor can help you avoid pitfalls and maximize opportunities.
Your future self might say, “A good advisor doesn’t just crunch numbers; they help you navigate life’s complexities and keep your emotions in check during uncertain times.” The peace of mind that comes from having a solid plan is invaluable.
Closing Thoughts:
A Conversation Worth Having
The idea of meeting your future self is, of course, a thought experiment. But it’s a powerful one. Imagining what your retired self might say can help you make smarter decisions today. By prioritizing time, investing wisely, safeguarding your health, and staying true to your values, you can build a future that your retired self will look back on with pride and gratitude.
Your future self is counting on you. What will you do today to make their life extraordinary?
The content is developed from sources believed to provide accurate information. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. Consult with a financial professional regarding your specific situation.
Ari Baum, CFP® is the Founder and CEO of Endurance Wealth Partners, with over 25 years of experience in the Financial Services industry. He brings his in-depth experience to Conceive. Believe. Achieve. for his clients.
Securities and Advisory services offered through Prospera Financial Services Inc. Member FINRA/SIPC. Brokerage and Advisory accounts carried by Wells Fargo Clearing Services, LLC.
