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Start saving for your goals now, says certified financial planner

Steve Repak makes a point during a financial planning workshop held in Joel Auditorium. Photo By Craig Coleman

Oct. 2, 2009 — The workshops held in various locations after Suze Orman’s presentation in the Wagner Center lacked the rock concert vibe of a big crowd and T.V. cameras. The “Dream Big — Plan Now! Make Your Ideal Retirement a Reality!” session in Joel Auditorium, had fewer attendees, but that allowed Steve Repak, a certified financial planner, to stalk the room, stopping occasionally to address attendees one-on-one. He peppered his presentation with humor and drew on his 11 years of experience as an enlisted Soldier to relate to his audience.On the subject of retirement planning, Repak relies on a simple formula: subtract your expenses from your income and come out with a positive number. “If you don’t have a positive number, you have two choices,” Repak said. “Get your spouse to find a second income, or spend less.” 

Repak said the reason it is so difficult for most people to reduce their income is that buying things feels good. “When you buy things, you release [the hormone] endorphins. People buy new cars and love the new car smell. But after two months of their stinky butt sitting in it, the new car smell is gone. They want something else. It’s because they’re looking for that next fix. That’s how we’re wired.”

The Charlotte, N.C., native said every decision we make, financial or others, is an emotional decision, but, “the difference between people who have money and people who don’t is the people who have money can control their emotions.”

Repak told the group that saving now is the most important thing you can do to affect your quality of life during retirement. He said the greater the percentage of your retirement income comes from savings generated by investments, the less risk you need to take to maintain your income when you’re no longer working.

Repak engaged himself in an animated debate on the merits of the Roth Individual Retirement Account (IRA) versus the federal Thrift Savings Program (TSP), racing back and forth across the stage, hurling facts and counter-facts as to which financial instrument was “better.” In the end, he said how you invest is not nearly as important as making the commitment to save.

“Start saving toward your goal now,” Repak said. “If you don’t have a TSP, enroll in your TSP. I don’t care if your 50, 60, 20, 80, 90, put money in your savings. If you don’t know how to invest, you don’t need to know how to invest. Just put your money into L-funds — lifestyle funds. Just start putting money away. Put it into a Roth IRA, I don’t care where you put it, just start saving money.”

At the end of the workshop, Repak offered the group information that he said is normally reserved for financial industry insiders, like himself. “I’m going to give you a web site they only give to certified financial planners that makes us a whole bunch of money. It’s call w.w.w.google.com,” he said as his audience laughed. Repak said you can find more information there about TSP, stocks and other financial matters. “You’ve got to do your research. It’s not hard.”

“He’s funny, and that’s a good way to learn,” said Staff Sgt. Michael Hendricks of the Medical Center Brigade’s Alpha Company. Hendricks attended the workshop to improve his financial education. He said the most important thing he learned was that investing in TSP can affect your annual tax rates. “I already have TSP, so I’m going to raise my percentage so less of my money will be taxed.” 

(Craig Coleman, Stripe Assistant Editor)