American Funds Investors
American Funds investor Joyce Kimura shares how she started putting away $25 a month to reach her goal of traveling in retirement.
Recorded June 2012
Joyce Kimura: I think I always thought that when I retired, I wanted to travel. Because even when I was teaching, I would travel in the summer when I could. So yeah, that was one of my goals was to be able to afford to travel when I had the time.
I love to eat. I like to cook and bake and so forth. And one of the things I love about traveling is that you get to eat the food in the country, so that’s one of the things I really love about traveling. I love to eat.
Well, actually, my financial advisor got me started in putting away monthly whatever I could afford. I think it was $25. Of course, I wasn’t making very much either. I was probably making $700 a month, if that.
But I just started with $25 and then I would just gradually increase it. If I got a raise, I would maybe take a little bit of that and increase my investment. It was taken out of my paycheck so I didn’t really miss it. No matter whether the market went up or down, I just kept putting in that monthly amount that I had committed to, and I did that for over, well, about 37½ years.
When the market went down I really didn’t need to adjust my investment withdrawals, because I was pretty much just trying to live on what I was still earning or getting from my pension. I didn’t want to open the statement when it came. I think everyone felt that way because you know, you looked at it and everything had gone down. So I did talk to him and he was reassuring. So I just pretty much went with his advice.
I think teachers have to be conservative because they don’t make a lot of money. When teachers are starting out and if they have a family, they don’t have a lot of extra money to invest. I think my style is that I just consistently invested every month, and so it turned out well.
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