Retirement can mark an amazing new beginning. It means an incredible opportunity to take control of your time and do all the things you have had to put off over the years – all without the day-to-day stress of work, building a team, dealing with customers, and financial planning.
Whether you're in your 20s or your 50s, there are steps you can take to help ensure a comfortable, secure retirement.
As the saying goes, “Life is short, eat dessert first” but when it comes to planning for retirement, viewing your life from the end and planning along the way, taking small steps over the course of years and decades means you’ll likely be fully prepared in the long run. Over the years, I’ve seen a wide range of people from those totally prepared to those who’ve not even begun to think about their plan until it’s WAY too late. Successful retirees will tell you that to reach your goal you have to start as soon as possible – regardless of your age. Whether you are in your 20s or your 50s, there’s something you can be doing to help you go the distance toward a comfortable, secure retirement.
Americans are living longer, and that means a higher chance of requiring long-term care. Retirement is a major milestone that brings many life changes. One thing that doesn't change for most people: the fear of running out of money. According to the Transamerica Center for Retirement Studies, “the most frequently reported retirement worry is outliving savings and investments. Across all ages, 51% of respondents cited this concern, and 41% of retirees claim the same fear. Additionally, only 46% of retirees think they've built a nest egg large enough to last through retirement.” Here are five reasons we believe clients dangerously deplete their retirement savings:
Preparing for retirement is a top priority for an overwhelming majority of Americans, but only 50% of pre-retirees believe they are well-prepared with a strong retirement plan, according to the results of a Prudential Investments survey of 1,568 adults living in the United States.
Since retirement accounts are not part of a previously established Will, they are not governed by its provisions. Hence, it is important to keep the beneficiaries on such accounts up- to-date as any changes made on your Will/Estate will not be reflected on your retirement accounts. Furthermore, any designations on retirement accounts would supersede the designations on Wills.
How many of us, left to our own devices, will take the steps necessary on the critical financial matters that have a significant impact on our family? We tend to relegate them to the bottom of the urgent pile and hope they just never become an issue. We know they’re important but avoid dealing with them.
Here are a few of the most common issues that we find folks usually put off, procrastinate on or try to avoid:
Everyone wants to retire comfortably when the time comes. Most also want to help their child go to college. So how do you juggle the two? The truth is, saving for your retirement and your child's education at the same time can be a challenge. But take heart—you may be able to reach both goals if you make some smart choices now.
The first step is to determine what your needs are for each goal.
Beth is in her 60s and never married. She ran a successful consulting business for 20 years and sold it with enough assets and investments to comfortably retire. A lifelong patron of the arts, for years she volunteered and worked tirelessly to raise funds for the local non-profit theatre. Though Beth never had children of her own, she has a close friend with whom she’s been actively involved in raising the friend’s two children.
Because Beth doesn’t have any children or siblings and her parents have long passed, she doesn’t think she needs to bother with a will. Unfortunately, if she passes away without one, all of her assets could go to the state or at best, to some distant relative she may not even know. With advanced planning, singles can avoid the state court appointing a distant relative he or she may dislike or never have met to make decisions on their behalf.
Are you concerned about retirement? According to recent survey 71% of individuals that are within 15 years of retirement report experiencing increased levels of anxiety when thinking about retirement. It is no wonder that the thought of also taking the role of retirement planner/investment specialist/financial planner hat causes stress considering all of the obligations working adults in this phase of life face. Most will probably experience a “ceiling of complexity” and lack of time to properly address all the details of their family’s financial matters.
Selecting a competent professional who can carefully listen to your needs, goals and provide some clarity, guidance and confidence is also a challenge. You may ask, “How do I find the right person to help in our situation?” The following are some questions to ask yourself and your potential advisor to help guide you to the right working relationship. Let’s start with some questions to ask yourself.
Maximizing Your Financial Life
Are You Confident That Your Financial Advisor Is Making Your Life Goals Their #1 Priority?
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