David Giertz started working in the financial industry in 1989. He began his professional career at Financial Horizons Security Corporation where he was a financial adviser for four years. He then joined Citicorp Investment Services where he spent the next decade climbing the corporate ladder. In 1999 he moved from Florida to Dublin, Ohio, in order to work for Nationwide Investment Services as one of their top executives.
A lot of younger workers put off starting to save for retirement, he says. They usually want to pay down their student loan debt, save for a house, and go with other financial priorities. While saving for retirement isn’t sexy David Giertz says that the earlier you get started the better off you will be. He has adviced his clients for many years to start maxing out their retirement accounts as their #1 priority. The best way to do so is to have this money taken out of your paychecks automatically so that you never even miss the money.
Everyone should live below their means, David Giertz says, and this is especially true for young people. The money they put away now will be amplified after 40 years into much more money. They also get into good financial habits which will help them throughout their lives. People want to spend more when they earn more but he says this is a huge mistake which ends up with people having no retirement savings and living paycheck to paycheck no matter how much money their bringing in.
Davi also says that younger people need to establish an emergency fund as quickly as possible in case they lose their job or an unexpected large expense occurs such as a medical bill. Most people should have six months worth of income in this emergency money and as their annual wages go up the emergency fund should also go up to half of those wages.
Another thing he stresses to clients is to not claim social security as soon as they are eligible. Instead, wait until at least full retirement age as each year you don’t claim this benefit it goes up 7% in value.