Financial planning can be a stressful endeavor filled with bumps in the road. No one jumps for joy at the thought of sorting out their financial mishaps, but we shouldn’t let our financial woes bring us down. It’s time to face the reality of our fiscal responsibilities head on. Rather than devising clever excuses to put off our financial realities, wouldn’t it be wiser if we addressed our money troubles head on? Everyone looks for a perfect time to sort out their finances.
Well, unless you win the lottery, there will never really be a “perfect time” to get out of debt or begin financial planning. If a house is burning, wouldn’t the best time to extinguish the flames be as quickly as possible? Imagine your debt as the burning house. You want to extinguish that fire, no matter how intimidating it may seem.
Similarly, your financial investments for retirement are just as important as handling your debt, as they will reflect your finances in the future. While it may seem like a long ways away, retirement is coming. Most people look at retirement as the end of financial planning. Unless you have some kind of top-secret bunker with crates of money awaiting your retirement, this just isn’t true.
In fact, forty percent of baby boomers expect to work until they die, according to data from AARP. Financial planning in retirement doesn’t have to be a chore. If you’re able to develop a plan of action, you’ll be able to invest and save throughout your retired years.
Here are some tips for financial planning in retirement:
1) Know Your Income
The Social Security Administration can help you get a projection of how much you will be earning. Be sure you know exactly what you will end up, as this process becomes tricky if you try and take advantage of delayed Social Security benefits. Be sure to know any other income you may be receiving. If you can see how the money will be flowing in, you’ll be able to predict how financial life in retirement will really be.
2) Be Smart With Spending
Based on what you know about your income, what will your spending look like? You won’t be buying any gold-plated toilets if your income does not permit such a luxury. When projecting your spending budget, it’s detrimental you know your income.
3) Cover Insurance Needs
Know that your insurance policies may shift when you are around sixty years old. Often times life policies will become much more expensive voluntary coverage. A financial advisor can help come up with the best solution.
4) Keep Investing!
This may be the most important rule to follow in retirement. How long is your retirement going to last? According to the Centers for Disease Control Data, maybe 20 years or more. This is enough time for inflation to devalue your investments. Moreover, it’s also enough time to run out of those hard-earned retirement dollars. A conservative investment portfolio will generate income and protect your earnings from inflation.
Carl Blight has had over 10 years of experience working in the financial sector. As a financial advisor, Mr. Blight has provided sound investment opportunities to several clients. For more financial advice check http://www.seniorsfinancialsolutions.com.