The danger of sequestration along with the impending fiscal cliff has many Americans worried. The tips offered in this article are not for just these tough economic times but for times good and bad. Your economic decisions should be based on a long term strategy that will work in any economic situation. There are additional links to retirement planning resources at the end of this article.
Free Retirement Plan – Retirement Planning Tips
The current state of the US economy, the possible sequestration and the looming fiscal cliff is creating a feeling of helplessness for many Americans. This article is designed to offer some tips that will help you and your family in your quest toward improving your financial future, getting you on track with your retirement plan and financial freedom. These tips will help you get an accurate picture of your current financial situation along with some actual action steps to get things moving.
Free Retirement Plan – Retirement Planning Tips – Top 5 Tips For Your Retirement Even With Sequestration – Tip #1: Decide What Is A Priority For Your Situation
Many times people look at what others are doing and to use an old cliche’ they attempt to keep up with the Joneses. The better approach is to decide the things that are important to you and your family and make them a priority. Since your reading this article I will assume your financial future is important. This might mean the newest electronics or the latest fashions should not be on the list. Sit down and have each member of your family write what is important to them. Discuss these items and create a family mission statement. Large corporations have a mission statement and your family should too. This helps everyone understand the direction the family want to take. Take into account both long and short term goals and what is getting in the way of the family currently being able to achieve these goals. Keep the ability to “smell the roses” along the way in the plan just don’t do these short term things at the total expense of your long term goals. Buying used automobiles, movies after they have been out for awhile or video games when they are on the sale rack are some examples.
Free Retirement Plan – Retirement Planning Tips – Top 5 Tips For Your Retirement Even With Sequestration – Tip #2: Cutting back a little now is easier than delaying.
Taking the necessary steps a little at a time is always easier than making drastic changes. When times are good it is easy to slip into bad spending habits. Then when times are tough it is hard to “do without”. If you have made small adjustments and learned to live well within your means during the good times you will be much better prepared to weather the tough times. Make a list of all the things that your family spends money on and decide which things you can do without or get at a better price. No item is too big or too small. You will be surprised at the savings that can be moved towards achieving the long-term financial and retirement plan goals of the family.
Free Retirement Plan – Retirement Planning Tips – Top 5 Tips For Your Retirement Even With Sequestration – Tip #3: Pay Yourself First And Make Saving A Priority.
Even though this sounds like a simple thing to do, many families don’t do it. They say when I make more money I will start saving. The total opposite should be the idea. Cut out whatever you must to start saving 10% of each payroll check. This will allow you to create an emergency fund that will help take of emergencies from savings instead of using credit. You can also use this tip to save for things you want like vacations, a new to you car etc. Allowing yourself to collect interest instead of paying interest will change your life. If your employer allows having the money taken directly out of your payroll check can be a good way to accomplish this goal. You will never even miss the money. Start small, like 1%, if you must but get started.
Free Retirement Plan – Retirement Planning Tips – Top 5 Tips For Your Retirement Even With Sequestration – Tip #4: Know What You Can Afford To Lose And Protect The Rest.
Having the correct amount of insurance is important. Too much coverage means you are sending money to the insurance company that you could apply towards other goals. Not having enough coverage can leave you open for catastrophic losses. Having emergency funds will allow you to raise your deductibles or increase your waiting periods. Determine what your basic necessary monthly expenses are and make sure you have adequate disability and life insurance in the event that one of the income earners die or become disabled. Waiting until you need coverage is too late, get the right things in place in advance.
Free Retirement Plan – Retirement Planning Tips – Top 5 Tips For Your Retirement Even With Sequestration – Tip #5: Educate Yourself As Much As Possible But Get Help Where It Is Needed
Just like you might be able to make some minor repairs on your car but need help for the major things you can’t do everything yourself when it comes to financial and retirement planning. As you work through the prior 4 tips it maybe best to seek additional help and advice. Ask around and see who your friends, family and co-workers use. Seek the advice of a professional who has worked with someone who is similar in age, martial and economic status as yourself and your family. Make sure your feel comfortable with any professionals you decide to work with. Check with FINRA, your state insurance commissioner and the Better Business Bureau. If there any complaints ask the professional about them. Not all complaints are valid so just because there are some on record is not automatically a reason to avoid the person. Look at the entire picture.
We hope these Top 5 Tips For Your Retirement Plan are helpful. Do your own homework and good luck in your journey towards retirement.