Locked Up

When deciding whether or not to contribute to a retirement account, some people decide not to because they don't want their money tied up. They know the money can't be withdrawn without paying hefty penalties and taxes and are more comfortable having that cash sitting in their bank account available at any time earning next to nothing in interest.

For those same people, when it comes to spending money on a trip, clothes, home project, or going out to dinner they have no problem locking up their money. When they are 65 and want to retire how are they going to get money from the all the restaurant meals they ate, from all the clothes they bought and all the credit card interest they paid over the last 30 years? When I look in my closet I see clothes and shoes but I also see a bunch of spent dollars, not growing in value and no way to get that money back.

It is important to be good stewards of our money, prioritize how and where it is spent and be prepared for when we don't want or can't work any more.