Taking Your Retirement Benefit With You

The reality of retiring at the age of 65 seems to be a thing of the past. Millions of Americans are entering retirement age without enough funds to allow them to live the lifestyle they once had. Even though we are all told to start investing early in life, many don’t for one reason or another. Some had a good plan of saving, but something happened and they lost their nest egg. I have talked to many people over the years who wished they saved more or wished they had started earlier. Just know this, IT IS NEVER TOO LATE TO PLAN AND SAVE. Don’t dwell in the past and think “If only I…” This will paralyze you when thinking of the future. I have people contacting me in their 50’s or even 60’s who are concerned they hadn’t saved nearly enough and would never be able to retire. We take a look at their total picture and even though early retirement may not be a reality, we make a plan. Here are a few tips Look at Your Current Situation Be realistic and determine how much money you will need to save to live a comfortable retirement. Once you’ve come up with a number, take action immediately to create your savings plan. Really look at your spending habits. Are you a shopaholic and have a closet full of clothes that still have the price tag attached? Look for ways you can cut back on spending. Look at Your Savings Options It is critical to start saving as fast as you can. If you already have retirements accounts you will want to make sure to max out your yearly contributions. You may also need to open additional accounts in order to save what you need. A diversified portfolio will help a steady return on your contributions. Look into Money Saving Options If you struggle in saving the amount of money you need each month there may be creative options to boost the amount in your account.  Ask yourself: Can I downsize? Look at your current living situation. Have the kids moved out and there is no longer the need for such a large living space? Do you have large ticket items you no longer use or need? For example, assess if you really need that boat that hasn’t even touched water since the summer you bought it. Or, reevaluate the reality of when you’ll actually use the RV that hasn’t logged any miles for years. It isn’t too late to take charge of your financial future. But, only you can make it happen. Instead of thinking, “I coulda”, I shoulda”, or “I woulda”, take control. Get help in your financial journey and plan for a comfortable future.

Every year, I set aside time between Christmas and New Year’s to evaluate last year and plan for the next year, personally, professionally and financially. The New Year sparks a new beginning and in turn sparks a whole slew of resolutions. The top seem to be: Lose Weight, Get Fit, Get Organized, and Spend More Time with Friends and Family. When you are considering your resolutions, I challenge you to think of them in a different light. Lose Weight Immediately we seem to draw our focus on trimming our waistline, but what about the weight of debt? Debt can weigh heavily on your mind and be an obstacle of reaching some of your goals. Resolve to eliminate debt. Create an action plan to pay off your credit card debt as soon as possible and defer any major purchases until you can pay for them with cash. Work to develop the habit to track monthly expenses and develop a budget. Pay off your highest interest rate cards first. Use any available discretionary cash flow to whittle the debt away. Already been doing this? Then it’s a perfect time to review what you’ve accomplished. Look at the numbers and see where you were last year at this time and where you have come. Evaluate to see if any adjustments need to be made. Get Fit Don’t just think about getting on that treadmill or taking that Yoga class to get physically fit, also think about getting financially fit. In order to reap the benefits of exercise, you’ll need to create a plan and stick to it. Becoming financially fit is the same way. Create an easy plan with attainable goals to keep you motivated. Get Organized Dealing with stacks and clutter that may be in your garage or home may be a priority, but don’t forget about organizing your financial affairs. With tax time just around the corner, don’t just pile up your year-end investment and bank statements. Instead take a look at them and make sure your allocations line up with your goals. When it comes to estate planning, are your papers in order? Review your wills, living wills, health care proxies, power of attorney, and trust documents. Make any needed changes to beneficiaries on your life insurance and retirement plans. Spend More Time with Family and Friends Time with the people that matter the most to you is priceless. A little bit of time spent on financial planning and reviewing will help you stick to your goals and, in turn, free you up to spend time on the things that matter the most to you. So remember, as the year draws to a close, it is the perfect time to reflect back on the last year and look forward to the next and evaluate what changes one needs to make.