After struggling with my finances for more time than most people realize is possible, I began thinking more seriously about what I could do to make things right. I began working hard to go through and identify challenges that I was faced with, including the fact that I had several kids that cost a lot of money. I began thinking of ways to work on saving cash, and it was really amazing to see how much of a difference something like skipping drinks with dinner and working on finding foods we could make at home could really be. I wanted to start a new website all about creating a more solid financial plan. Check out this blog.
Looking Ahead To Retirement: 5 Important Lessons A Financial Planner Can Teach You Right Now
Unfortunately, Americans either can't or won't contribute sufficient amounts to retirement savings and the consequences can be catastrophic. Since you don't want to be left choosing between food or prescriptions in your retirement, nor do you want to be at the mercy of government programs, you really need to take a long and hard look at your retirement plans right now. Financial planners know all about these precarious situations and have a lot to teach people about planning for the future.
1. You Need A Specific Goal
While most people would love to retire with millions to spend, the average person doesn't know how much they need in retirement and that figure is crucial to planning. For example, if, according to the lifestyle you'll lead, you will be spending more than half of your present income after you retire, you need to have a savings plan that helps you reach that specific goal. Otherwise, you'll very likely run out of money. It's challenging to save that much and more; however, it's more of a challenge to live without the money you need to live and pay all of your bills, once you stop working.
A financial planner will help you figure out how much savings you need to last through your retirement and how to start banking that money right now.
2. Tax Strategy Is Paramount
With most retirement accounts, you can opt to pay taxes on the money going in or you can pay years later, on the money going out, along with possibly paying on the interest, too. Although putting off paying taxes may have some appeal, in the long run, you're likely to pay much more if you delay and that should be part of your retirement strategy.
3. Housing Costs Should Be Minimized
Even if you can afford a big, beautiful home, do you really want to be paying a mortgage of that size right up until retirement and possibly beyond? Consider the benefits of a smaller home, including how much easier it may be to manage the costs of it and how you can use the saved money to do more for you in retirement. You probably don't want to be cleaning and maintaining a home of that size in your golden years anyway and the taxes on it won't go down, just because your age goes up. Look for a home that's manageable in many ways, from the mortgage to insurance and from cleaning to heating and cooling. Housing costs must be considered as you plan your retirement and you can do a lot to ease financial stress if you choose to live "beneath your means."
4. Healthcare Costs Can Devastate You In Retirement
You've likely enjoyed your employer-provided insurance all these years, but once you retire, you need to come up with your own benefits. Think about that now and look into your long-term options. Otherwise, all your retirement efforts could be spent on the procedures and medications you may need to live a long and healthy life. A financial planner can walk you through your options and help you choose the most viable plan.
5. It's Never Too Early Or Late To Start A Plan
Professional financial planners often have panicked people to help, who have waited far too long to start thinking about retirement. Don't let that be you. Commit to a retirement plan now (even if you're just finishing up college or having your first child), because the more you can save and prepare, the better off you'll be in the future. Waiting too long will likely mean not having enough to live on once the employment income is history.
Don't let your retirement dreams disappear with your savings, because you failed to plan for your future. Sit down with afinancial planner who can help you sort your money out for now and later, so you can retire to the life of your own choosing.