What Happened to My Money

Do you wany to know What Happened to My Money? Well!, when we started working Mr. Smith had already retired, but he never stopped giving us advice and opinion about our goals in savings and investments. He had pointed out that every career has a productive stage that needs to be seized in order to gather an amount that enables us to enjoy our current lifestyle in the present as well as in the future.

We were careful in expressing our wishes and concerns clearly so he could trace the appropriate plans in our life project

He helped my brother Louis design a plan to purchase a home. Mr. Smith stressed that it was better to purchase it with savings rather than debt, due to the ‘opportunity cost’. He also recommended another program that considered his desire to achieve financial independence, as well as a retirement program.

Following my father’s steps I had become surgeon, he pointed out the importance of being protected against full incapacitation, since my career depended mostly of my hands and eyes. He also showed me how to begin gathering money for the moment that I got married and had kids, so I would have the appropriate protection.

My brother John, decided that What should Happen to My Money and who would soon finish his law studies and was planning to establish his practice along with a few of his classmates, were suggested a program that would allow them, in case one of them passed away, to be compensated without harming the business, being faithful to the main goal in the partnership.

As for our long term investment, we gradually saw it grow, but we really confirmed its importance when my father and mother decided, not because of pressure but out of conviction, that it was time to make way for new generations. And since there were still young and full of energy, they laid back and enjoyed the money they had gathered throughout their lives.

We were happy to witness their dignified retirement, because we sometimes saw other retirees at the banks, who after working so many years, stood in line to cash scarce amounts (now they are given cards so they can collect at the ATM and avoid those lines). Instead, my parents had made a magnificent combination of:

-          Social security capital

-          Retirement fund.

-          Savings programs.

-          Compound interest.

They had one of these each, which allowed them to receive a monthly installment above of what they needed to cover their basic needs. They had another one that made enough interest to pay for their health care insurance and keep the purchasing power of the first.

And one more that they would receive soon would allow them to travel and visit the cities they had always wanted to see. And something very important they couldn’t stop considering, the compound interest that their savings and investment programs had generated.

Having precise and clear goals allowed me to achieve my financial Independence and a good lifestyle for my sons and me. And it’s not just the amount I save, but the time and consistency I did it with, have led me to a solid foundation. I am convinced that leading a safe life is a personal responsibility.