Recent grads do not normally worry too much about retirement. It is the nature of the beast when you are under 30 to think about something that is at least 30 years in the future. But we all know that Social Security is probably in significant jeopardy and even if it is still in place when you retire it will probably provide less then 15% of your need.
So what to do? The answer today is to participate as soon as possible in your 401K. Max out and never draw on it. You get the power of dollar cost averaging and the power of compounding growth. The concept of dollar cost averaging is that if you invest the same amount every month, then when stocks are up you buy less and when it is down you buy more. This is a great way to build wealth. The second the power of compounding growth means you will be doubling your money every few years. I can still remember the month that my growth in my 401 K exceeded the amount I was putting in. A 401K participation is what allowed me to retire (kind of) at 50 with enough money to live on the interest the money makes.
So my advice is when you are young and healthy, the 401 K is probably the benefit to look for.
Thursday, June 7, 2007
Monday, June 4, 2007
"Working your way up", how have you done it? What obstacles did you personally face?
It is always a challenge to find ways to work up in a company. The implications is always that you are in competition with others and that favoritism will rule.
I do not believe this premise and in my career it did not work this way.
I have found that by following some simple principles / processes you will move up because there are so many people who don't so you are quickly recognized as an achiever / leader.
They are as follows.
1. Work Hard, always give a bit more then expected. This may be coming in 10 minutes early and not leaving as soon as the day is done, it may be putting a bit of flash in a report, or simply double checking your work so the common errors don't show up.
2. Treat everyone with respect. Both above and below. It doesn't matter how smart you are or how well you do the job, if people don't like you, they will avoid you and they will pass you over when choosing bosses.
3. Always take on extra responsibility. In general do it without asking for more money. The money will come. It is the old adage " You Dance Like You Don't Need the Money"
4. Train those under you to do your job. It is not commonly understood, but you can not move up until someone is able to back fill you. It is very common for people to hold on to information about their job believing they are protecting themselves. What they are doing is locking themselves into that position so they can not move up.
5. Look for opportunities for the company to grow or excel that are out side your normal responsibilities. Think like an owner, not an employee. Find ways to improve the company.
I can almost guarantee that if you learn to live the above simple principles you will excel and move up in any organization and as a corollary you will probably happier then a good percentage of the population because the same principals allow you to have pride in what and how you do it.
I do not believe this premise and in my career it did not work this way.
I have found that by following some simple principles / processes you will move up because there are so many people who don't so you are quickly recognized as an achiever / leader.
They are as follows.
1. Work Hard, always give a bit more then expected. This may be coming in 10 minutes early and not leaving as soon as the day is done, it may be putting a bit of flash in a report, or simply double checking your work so the common errors don't show up.
2. Treat everyone with respect. Both above and below. It doesn't matter how smart you are or how well you do the job, if people don't like you, they will avoid you and they will pass you over when choosing bosses.
3. Always take on extra responsibility. In general do it without asking for more money. The money will come. It is the old adage " You Dance Like You Don't Need the Money"
4. Train those under you to do your job. It is not commonly understood, but you can not move up until someone is able to back fill you. It is very common for people to hold on to information about their job believing they are protecting themselves. What they are doing is locking themselves into that position so they can not move up.
5. Look for opportunities for the company to grow or excel that are out side your normal responsibilities. Think like an owner, not an employee. Find ways to improve the company.
I can almost guarantee that if you learn to live the above simple principles you will excel and move up in any organization and as a corollary you will probably happier then a good percentage of the population because the same principals allow you to have pride in what and how you do it.
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