CR_Summer2020_Online

We’ve been gathering experts of our own — people
who have worked in real estate for years and have
found success saving for the future in an industry
constantly trying to keep up with the present. And make
no mistake, while retirement may seem like a long way
off, planning for retirement starts in the present.
Yes, retirement may be the last thing on your mind
when there’s so much uncertainty in the market, but
that doesn’t mean that it shouldn’t be part of your life
right now. According to a report published by CNBC
in March 2018, on average, Americans between the
ages of 55 and 64 have saved only 12 percent of the
recommended amount needed for retirement.
However, there are simple things you can do to get
yourself on the right path to a secure retirement.
Our experts recommend three things you can do
today that will set you up for success in the future:
build your reserves, organize your money and
acquire investments.
BUILD YOUR RESERVES
Most financial advisors will tell you that you need
emergency reserves that can last you six months.
So, if your monthly expenses are $ 2,000 per month,
you should have $ 12,000 in savings. If you spend an
average of $ 5,000 per month, you should have
$
30,000 in reserves. If you don’t have any savings
built up, these numbers can be daunting, to say the
least, so where can you start?
Kasey Stewart is the director of member development
for the National Association of REALTORS ® . For her,
the answer is in starting small. “If you save $ 11 a day,
after 90 days you’ll have saved $ 1,000, and that’s a
good start.”
Stewart points out, though, that even diligent
savings can disappear without a system of
organization. Start by separating your
business expenses from your
personal
expenses,
which is one
thing when your
expenses and income are
predictable. REALTORS ® , however,
work predominantly off commission,
which can fluctuate widely and is
dependent on the time of year, the
economy and the market.
GET ORGANIZED
As a Wealth Management Advisor with First
Midwest Financial Services, Benjamin Wozniak
learned early on that organization is key. “What I set
up is what I call a waterfall, a stair step approach,”
he said. Rather than approaching savings with a
fixed number like $ 11 per day, Wozniak devotes a
percentage of his income to savings, which he then
breaks down even further.
“All the money I get flows into a business
checking account,” he said. “Then, I take a
percent out and deposit it into a separate
account for taxes, and I take a percent out
and deposit that into a separate account
for savings.”
Wozniak pointed out that sometimes
we end up using a great deal of
structure to afford and allocate
money to our hobbies, where our
16 Chicago REALTOR ® Magazine