Joshua Rodriguez, partner at CNA Finance, says the most common question he gets about retirement is, “When is the best time to start investing?”
“The best answer I can give to that is the first day you get an allowance from your parents; so, if you haven’t started already…you’re a bit late!” he says.
On CNA Finance’s website, Joshua and other investment and money management experts share their insights on investing and personal finance. Here, Joshua discusses economic trends, common concerns about saving for retirement and his favorite retirement investments. Read on:
Tell us the story behind CNA Finance.
I started CNA Finance as a blog that would help the everyday consumer learn how to manage their finances. As it grew, we decided to take a turn toward investing. I guess I enjoyed that type of content more. Soon enough, we were getting more traffic than we could handle and experts that I follow asking to contribute on the website. That’s when I knew it was time to open things up a bit. Now, CNA Finance is much more than a blog; it’s a news outlet that offers both personal finance and investing news written by experts in various fields.
What is your professional background? How did you become so passionate about finance?
I think that passion and profession are often one in the same, and for me, that explains my view on finance in general. My dad told me that even as a little 4-year-old boy, I was pulling on the pant legs of well-dressed professionals in grocery stores, asking them what they did for a living and how much money they made. Apparently, I had a new career path about once a week those days, too!
Growing up, I did a bit of my own research on money and worked to really understand what makes money work and what could break the bank. In my young adult years, I took this knowledge and applied it as a debt counselor for a small company, learning more and more with every step.
After working as a consultant, I realized that most of the people I talked to couldn’t tell me what a compound interest rate was, they didn’t understand why default rates even existed, and many of them couldn’t even tell me their level of credit. Not to mention, most had no idea what to do with the money that became available once debts were paid off. So, I decided I’d start a website to help guide people in the right direction, and here we are!
What is the investment climate today?
I’m one of those people who firmly believes that any investment climate could be profitable if you play your cards right. However, I do have to say that I’m very concerned about the stock market as is.
First off, I think that several assets are far over-valued. Then, we have the issue of the strong dollar causing foreign sales to go downhill for huge corporations like Google, Coca-Cola and more. While it seems like things are moving a bit on the bullish side right now, I am concerned about what overall sentiment will look like after 2015’s Q1 reports start to come out.
What are the biggest economic factors those saving for retirement should be aware of today?
I think that the best advice I can give there is that we can’t focus only on what looks to be the economic stability of the United States. Honestly, I think that’s one of the major issues with market valuations as they are now. With the exception of relatively poor consumer spending, economic outlook for the United States seems fine. However, when we look outside of the United States, we see a completely different story. Japan is struggling alongside Europe and Russia. Because technology has knocked down borders, we’re living in more of a worldwide economy today than ever before. So watching for economic dangers overseas could give you insight into what you can expect to see here in the United States.
What concerns do your readers have about saving for retirement?
I think the biggest concern my readers have with regard to saving for retirement is the fact that they don’t think they have enough to get started. Unfortunately, it’s one of the most dangerous concerns as well. With this mindset, retirement investments don’t start until it’s too late, and many lose valuable years of compound earnings. So, no matter if you have $5 a week or $5,000 a week to save, start saving! Even if you have very little to put away, you could put the money into a savings account and slowly build it to an amount large enough to invest. As your career evolves and your income improves, make adjustments to ensure a comfortable retirement.
What are your favorite types of retirement investments?
With gold so low right now, I would have to say that a gold IRA or 401(k) would be pretty interesting to me right now. Considering my predictions with regard to economic and market movement, now may be the time to roll things in that direction.
What are some of the most interesting trends you’re following about retirement savings?
I’d have to say that the most interesting trend I’ve noticed is the shift from more traditional retirement options to new, exciting ways to solidify financial stability.
Connect with Joshua on Twitter.
