Planning For a Safe and Secure Future

In the world today, there are dozens of excuses for people to avoid saving for retirement. Most people will even list it as a top financial concern, but in reality, most people have never been properly trained to save for retirement. For many people, this lack of training leads to fear and uncertainty of “doing it wrong” and wasting their hard-earned money, and they end up putting it off for a later day or waiting for a day that will never come. As most people who have been properly trained to save for retirement know, time is the biggest enemy of retirement savings, so these delays end up being costly when addressing their retirement savings needs. Here are some of the steps to start saving now versus later:

•    Current and Future Income – It is very easy to manage your current and future income using effective and efficient planning. Managing income is one of the prime ways which is used to manage the finances in the form of tax payments and savings, as well as various other monthly expenditures in the present and in retirement.

•    Current and Future Cash Flow – By carefully studying the pattern of expenses, one can quickly increase cash flows. Tax planning, careful budgeting, and sensible spending would be beneficial in saving up those extra bucks. Look at your monthly expenses a couple of times a year and cut costs and services you aren’t using or aren’t worth it, and you will be surprised how much you can switch to retirement savings with little impact on your current lifestyle.

•    Increasing Your Capital – Once you have improved cash flow, there will be an increase in your capital as the increased cash flow is diverted to retirement savings. This will be very useful in making investments for the future into your 401(k), IRA or ROTH IRA and helping to ensure your financial security and forming the best retirement plan.

•    Financial Security for Your Family – It is essential to ensure the long term financial security of your family, and an important part of your overall retirement services. Having the correct insurance coverage and retirement savings for your family will help provide security and lead to a more secure and peaceful home for unexpected events.

•    Investment Allocations – One of the essential parts of any retirement planning is having a proper investment allocation, which would involve defining personal circumstances, risks, and objectives. This will help you to identify the investment portfolio that suits you best to meet your retirement goals.

•    Your Standard of Living – One of the main benefits of having savings (retirement and short term) from proper planning is that money can be instrumental in the times of distress. In any instance where one of your family members who is contributing to your family’s overall income is unable to earn, then these savings will be helpful to maintain certain living standards until that income is replaced.

•    Removing Fear and Creating Financial Understanding – People who have better economic understanding are very successful in identifying which financial goals they need to achieve and how to work towards them by taking the correct actions. It is also a good way to approach the process of creating a budget and improving your overall financial well-being.

•    Social Security is not enough. You Will Need Retirement Savings – This is the lifeline of every retired person, from long-term planning to rainy day savings. Due to the turmoil in the financial world, financial plans can change dramatically, so it is a good idea to make investments that are diverse, liquid, and appropriate for your own risk tolerance. If you need the money in the short-term, investing too aggressively can have dire consequences, but balancing short-term needs with long-term goals can lead to proper cash management during times of emergencies.

•    Don't be afraid to talk to a financial advisor- Establishing a healthy relationship with a financial advisor to seek advice on the right investments for your goals, and to develop a plan, can be very beneficial. A financial advisor can provide inputs on your current financial condition, help create a customized financial plan for your future, and help meet your retirement plan deadlines. 

If you have children, you know how great it is to spend quality time with them, but not if you are a burden on them while in retirement. To live your entire retired life dependent on the financial resources of your children is not something anyone looks forward to, regardless of how strong of a bond you share with your kids. Being financially independent is a way not only to take care of yourself but also help your children and other loved ones, leading to an independent and burden-free life of your own, and hopefully teaching them the same successful habits along the way.