Don't Forget to Pay Your Future Self

I took a few moments today to play around with this app on my iPhone that let's you age yourself. It wasn't the best app, but here are the results.

I don't know about you, but I think I have a Zombie apocalypse in my future.

Seriously, I got to thinking about getting older and planning for retirement.

A lot of people are getting or waiting for a nice rosy check from Uncle Sam in the form of an income tax refund.

Most of these folks have visions of sugar-plums dancing in their heads. Should they buy a new flat screen TV? Maybe an iPad? A new grill for the back yard? Or maybe a down payment on a new car?

Rather than making a major purchase on something today, many of us should be thinking about paying ourselves in retirement.

Most households do not have enough money socked away for retirement. Many aren't even saving. We are an instant gratification society and we'd rather buy the toys now, and not think about the day we may  be looking like my pasty friend above and to the right.

Many of us think that Social Security will take care of our retirement needs and that Medicare will pay for our health care. Anyone my age (early 40's) should not be banking on Social Security or Medicare to be around when we retire. I mean, seriously, Congress has cut our contributions to these funds to help stimulate the economy. And there's not plan to recoup that lost revenue. That means there is a good chance Social Security and Medicare won't be able to pay for us. In essence, we're paying for today's retiree.

But time passes quickly. We should all be thinking about stashing at least a portion of that refund in an investment appropriate for our risk tolerance.  We may not think we're rich, but every penny is going to count in those years far out.

Start saving now. Consider finding a fee-based financial advisor you can trust. Fee-based advisors don't work on commission. They charge a fee for services provided, therefore they aren't just motivated to sell you stuff they from which they can make a buck.

If saving makes you chafe, consider it a paycheck for yourself that you'll cash in 30 to 40 years from now.

You won't regret it.

If you are getting one are you going to spend your refund now? Or sock it away in a savings account for the future?