Back to School: Your Retirement Plan
This time of year we usually can’t escape all the “Back to School” messages as many parents and students prepare for getting their children ready for the upcoming school year. You may be thinking it’s been a long time since I’ve had to worry about back to school preparations. However, as millions of students prepare for heading back to school there is a sense of rejuvenation and excitement for the year that lies ahead.
Perhaps, you could apply that same level of excitement and rejuvenation to retirement planning. Are there some financial goals that could use some tuning up? Are there some areas that you could improve as it relates to your retirement plan? This month we’ll be focusing on providing you with easy to implement steps that you could take to improve your retirement plan.
- Set Your Budget- Yes, we know budgets are not the most exciting topic, but it is important because your budget will underlie all of your wealth-building efforts and keep you on track. If you are aware of the regular expenses and bills it can help you know where your money is going. There may be places you can cut which could translate into more savings that can go toward your retirement.
- Develop a Financial Plan-A financial plan serves as your roadmap to retirement knowing how much you have saved and how much money you’ll need to retire is important. According to the Social Security Administration, the normal retirement age is about 66 years. Many financial planners recommend running your financial plan to age 100, which means workers need to plan on financing about 34 years on average. Just putting money away is not going to be enough you need to make wise investments and this is where working with a financial advisor could be helpful.
- Speak with a financial advisor- The most important decision an investor can make in building a retirement income plan is to seek the advice of a trusted, qualified advisor. A knowledgeable advisor will help you define life goals, teach about the risks you may face, establish the right financial picture.