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The thing about any decision is to be reasonable. If you're an avid cyclist you're not going to plan on riding the Tour De France. Likewise if you make the 2005 national median income of $46,326, you aren't going to invest your way to private jets, limousines, and mega yachts.
What is reasonable in this case? You can save and invest enough to continue to live as well as you are now when your time comes to retire. With a little more persistence, careful planning and discipline you may even be able to either retire earlier or wait and retire with an improved lifestyle.
This isn't rocket science, it's common sense but we're all dreamers and we all believe we can beat the odds and get rich. Some of us will, but not by listening to people who give simplistic esoteric advice like “think big.” Big ideas, big opportunities may arise but putting all our hopes on that is like spending all your money on the lottery.
Every day events and decisions can be decided using reason or emotion, I choose reason. Buying a car for instance, one might get caught up in the desire for a new sports car or SUV when a reasoned approach will lead you to a more practical sedan. With new LCD and plasma TVs out there one could easily decide to replace the current television that works just fine. And if television or movies are important to you then maybe that's a good idea but if you're complaining about bills, unable to pay off your credit card today, then it's probably reasonable to wait until things are more in control.
Like money we're often unreasonable when it comes to our beliefs. Republicans think Democrats are crooks and visa versa. The reasonable truth is that both parties are made up of people who care about this country and who want what's best. They may, and often do, disagree on the path and what actually constitutes success but their hopes for the future are similar. Each politician should be judged by their actions rather than their party affiliation. This is what I mean when I say Be Reasonable.
Which brings me to the topic of taxes which is a perfect example of the intersection of money and politics. People complain about taxes but I look at it as the price of freedom. I wish freedom were a bit cheaper but I want the benefits taxes offer me, like police and fire protection, relatively good roads (certainly better than dirt roads), education, and a strong military to name just a few. The rules associated with 401(k)s, IRAs, Roth IRAs, and the other choices out there have a direct effect on you and your finances.
As for me, I'm most unreasonable when I'm driving my car behind someone who is going too slow. I often take this personally but chances are they’re lost. I've been lost or in an unfamiliar area. It happens. And if I were reasonable I'd put up with it. On the other hand if the person driving slow was reasonable they would realize other people are on the road and they would pull over and let us pass while they get their bearings. Instead I get mad they're driving slow and they get mad that I'm practically sitting in their back seat. Oh well so much for reason.
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