Missed Opportunity

29 Jun 2018 23:33

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Early in June I posted an article “A Little Light at the End of the Tunnel“ where I documented some of my investing mistakes over the years and one of them was locking up too much of my savings in retirement accounts and here is a great example of how this was a mistake and made me miss an opportunity.

Last week my employer for the last 31 years sent me a voluntary layoff offer where based on my seniority I would get a lump sum 6 months of pay. Unfortunately because most of my savings is locked in retirement accounts and I am only 50 years old I simply could not jump at the opportunity to retire early with an extra pile of cash. Argh!! This was so frustrating! But alas it is my fault.

I realized my mistake 8 years ago and started aggressively saving into my brokerage account. My brokerage account to date generates on average $350 per month which is far short of living on month to month. If I invested the lump sum payout it would generate an additional $200 per month for a total of $550/month or $6600 a year. While this is not an insignificant amount it is still not enough to live on. I will probably have to watch this scenario play out again as I still have 9 years until I am 59 ½ though it is frustrating chasing the opportunity train and not being able to hop on.


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