The pandemic has changed all our lives forever. Some have experienced the loss of a loved one while others have lost their livelihood. I recently met with a client who lost his job, a career that had spanned over 30 years. The impact on his financial situation was immediate and caused him to reevaluate his retirement goals.
As a longtime client, I was able to reassure him that he had planned well for his retirement and could comfortably retire. What allowed this client to make retirement a reality? In a word, planning. Yes, you can certainly retire without a plan. But will it be a retirement where you feel secure and fulfilled? There are several key considerations when it comes to planning for a rewarding retirement.
• Contribute early – You’ve probably heard the phrase “The earlier, the better”. It may not have been referring to planning for retirement, but it fits perfectly. In fact, the compounding effect of saving for retirement can exponentially increase your contributions. The effect can certainly be more pronounced the earlier you start contributing to a retirement plan account. Just do it, regardless of your age. As an example, if you contribute $100 per month for 30 years and can earn 7% per year, you would have over $113,000. At $250 per month in 30 years, you could accumulate over $283,000. You get the picture. A little more saved per month can make a huge difference over time.
• Be consistent – One of the hardest things to do in life is to be consistent over a long period of time. That can be true of a good diet, exercise, and saving. Doing each of these things consistently can make a huge difference in your life. One of the easiest ways to be consistent in saving for retirement is by paying yourself first. Sign up to have retirement contributions automatically taken out of your paycheck or checking account. Removing the option to contribute, leads to better results.
• Have a realistic retirement age – Planning for retirement is a long-term goal. You need to establish a retirement age that considers how much you have saved and your contribution level. Hoping to retire at a certain age should be based on real numbers as opposed to unrealistic assumptions. Talk to a financial advisor who can help you set a realistic retirement age or use an on-line calculator to give you a general idea of when you could retire.
• Know that you can do this – Planning for retirement is never easy, but you have the power to make it a reality. With a little discipline and planning, you can have the retirement of your dreams.
Have confidence that you can make your retirement plans a reality. Hiring a financial advisor can help you to be accountable and put you on the right path. Like a personal trainer, a financial advisor can help set your goals and realize financial fitness.
~Novel Serialisation: Heavens Fire~
Mario Hernandez has been a Certified Financial Planner (CFP) for over 30 years and brings a vast amount of experience in the financial planning and investment management business. Through Longevity Wealth Management, Mario provides holistic planning services that help clients find solutions to live their best life. Mario’s email address is mario@longevitywealthmanagement.com. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Longevity Wealth Management. Osaic Wealth, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Oasic. Certain insurance products are offered by Mario Hernandez as a licensed agent independent of Osaic Wealth, Inc.. Mario Hernandez is not affiliated with Osaic Wealth, Inc. or registered as a broker-dealer or investment advisor.
