Were you aware that more than 70% of the population admits that they’re not prepared to retire? Some people are so inundated with debt presently, that they don’t have the means to save, younger generations are so busy paying back student loans and trying to survive with high cost of living expenses that retirement is last on their to-do list, and then there are those who have been misguided and believe that contributing to an employee retirement account or applying for social security benefits is enough to save for the future. Whichever category you fall into, the reality is, if you don’t get prepared now, you’ll find your retirement years to be quite the struggle.
Maybe You Need Help
Retirement planning isn’t as simple as it sounds. There are a plethora of factors that must be considered in order to set yourself and your family up for a bright future. Even if you have a savings account and plan on applying for social security, there’s a lot that can be overlooked. As adults get closer to retirement age and start to realize how ill-prepared they are, they turn to financial advisors for retirement planning services. The right expert can help in a number of ways that will allow you to live out your golden years in pure bliss. Here are some of the ways they can be of assistance.
Assessing Retirement Needs
Do you have any idea what you need to retire? Most people don’t. They know they need a large sum of cash to compensate for their wages, but what they need those funds for, or how much they need is often a mystery. During retirement, you’ll be responsible for paying for housing, utilities, transportation, medical expenses, groceries, personal needs, taxes, insurance, and entertainment. A financial advisor can ask questions that help to define your needs during retirement.
Setting Savings Goals
How much do you need to retire comfortably? $200,000 may sound like a lot of cash, but when it’s disbursed over everything you have to pay for multiplied by 5 or 10 years, how far will it really get you? A financial advisor who specializes in retirement planning can help you to set goals based on your list of needs. They can then give you a ballpark number to start working towards.
Choosing an Account Type
Though you may have an employee retirement account in which your employer contributes to as well, you should always have an individual retirement account on the side to invest in. Should you lose your job, the contributions stop leaving you with nowhere to stash your future cash. A financial advisor can talk with you about your options including an IRA and a 401K to see which is best suited for you. They can talk about various banking institutions to help you choose the accounts that offer minimal fees and the best rewards.
Remember, there’s more to being prepared for retirement than just saving money, you must also know how to expand your wealth. There are a lot of things you can invest in to grow your money, but some come with more risks than others. A financial expert can discuss the various options, the pros, and cons of each, and help you determine which investment opportunities you’d like to try.
In order to meet achieve your goals for the future, there are changes that must be made in the present. By changing certain lifestyle habits now, you can invest more in your future. A financial expert can advise you on how to manage your money better, reduce wasteful spending, pay down debts, and increase your earnings so that you can put more towards your future.
It may seem that all you need is a retirement account that you regularly contribute to and your social security benefits, but if you’re going to retire happily, there are a lot of other things that need to be considered. If you happen to be among the large percentage of Americans who do not have an effective plan or efficient savings for your future, consult a financial advisor and learn ways to get prepared for retirement.