In a scene from the movie Moneyball, Scott Hatteberg is asked to play first base for the Oakland A’s and responds, “I’ve only ever played catcher.” GM Billy Beane (Brad Pitt) tells him, “It’s not that hard, Scott. Tell him, Wash.” Ron Washington responds, “It’s incredibly hard.”
Saving money and investing are incredibly hard. You have to save until it hurts. Then you need to contribute to your IRA.
But the more money you save, the more money you have to compound—which can be a lot of fun. So keep saving.
The grim reality is that we have a nation of non-savers. The savings rate is woefully below its long-term average.
But today, already-discouraged investors aren’t getting paid to invest in safe, liquid assets like certificates of deposit. An irresponsible Federal Reserve is keeping rates too low.
Savers, especially retirees, are being lured into stocks for higher returns—while they last. Meanwhile, those who are still working are working for less.
Continue to save until it hurts. Don’t be distracted by the stock-market noise. After you fund your IRA, buy the Vanguard Wellesley or Wellington funds.