Are you one of those people lies awake at night, thinking and worrying? Ever wonder how your spouse/partner/friend can fall off to sleep right away with no problem, while you toss and turn, worried about the state of the world, the state of your mind, the state of your retirement?
You’re not alone. The past 30 years have seen a myriad of changes. We’ve gone from having computers the size of closets to one that can fit in our hand. The Internet, WiFi, and online shopping have become the norm, and the word Google has become a verb. What’s next?
Here’s one way to look at it: you can’t control what will happen next, but you can make a plan. Here are 6 steps you can take today to help you plan for the worst while hoping for the best.
Tip #1: Saving Does NOT Require a Ton of Money.
Even if you haven’t started saving yet, it’s never too late to start. According to a 2015 Retirement Confidence Survey, 69 percent of workers say that they could save $25 more a week than they are currently saving. It doesn’t matter how big or small the amount is, the point is to set something aside, even if it’s only a dollar. This will accomplish two things: 1). It will get you into the habit of not spending everything you make. Saving is a habit, and if you weren’t taught how to do it, then you have to learn. Most people think that saving requires large amounts of money. It doesn’t. It only requires that you have the habit. 2). It will add up over time. Whether this is your emergency fund, your retirement fund, or your vacation fund, you can always tell yourself as you fall asleep at night, “Hey, I’m SAVING.”Tip #2: Talk about It
There’s saying out there along the lines of, “Never talk about politics, religion, or money.” This might be good advice for polite dinner conversation, but for anyone in a serious relationship, talking about money is a must. Research conducted in 2013 by Kansas State University found that arguments about money early on in a marriage increase your chances of getting a divorce. Fights about money are more vicious and harder to get over. Saving for retirement or any financial goal is a team effort. Make sure that when you plan, it’s a partnership that involves the goals, hopes, and dreams of both partners.Tip #3: Expect the Unexpected.
Being prepared for bad things doesn’t mean that you’re a pessimist, it means you’re a grown-up. Every adult needs an emergency fund. Without it, it’s easy to charge those unexpected expenses on the credit card, which will only get you deeper into debt and increase your despair. Unexpected things can also come from good news – you get a job promotion and have to move, you’re getting married, or you’re adopting a child. When the good things you’ve been waiting for finally arrive, having an emergency fund will mean that you can pay for it without stress. Try to save at least three to six months of your day-to-day expenses in a cash account (such as a money market savings account) that is easy to access.Tip#4: Before you invest, get insured.
Life insurance plays an important role at every stage of life. When you’re young and just starting out with your new family, life insurance can protect your loved ones. A simple term policy can ensure that if anything happens to you or your spouse, the mortgage will be paid and the bills will be covered. Later during retirement, life insurance can help you protect your spouse’s income. It can also help you build a bigger legacy. Did you know that it’s possible to increase your legacy without having to spend a single penny more than you’re currently spending? If you have an RMD withdrawal that you are required to take out even though you don’t need the income, talk to one of our experts about how you can put this money to work for you so that it lowers your taxes and increases your legacy.Tip #5: Know who your advisor is.
We all have different people who we turn to depending on what we need. There are the friends who we call when we just need to laugh and have a good time. Other relationships we rely on during times of distress, when we need sound wisdom and a non-judgemental ear. Who do you turn to when you need financial advice? Perhaps one of the most important relationships you can have as an adult is the relationship with your financial advisor. Because money affects every area of our lives, a financial advisor is usually someone who has heard it all, and they know what to do from a practical perspective to lessen the financial pain. Having a good advisor can both save you money and stress. It’s not just a good financial sense; it’s an investment in your peace of mind.Tip #6: Don’t stop believing.
Yeah, this is a song by Journey, but it’s also an immediate way to help you feel better. The difference between the person who succeeds and the person who fails is in many cases the day that they try one more time. It was Thomas Edison attributed with the saying, “”I have not failed 1,000 times. I have successfully discovered 1,000 ways to NOT make a light bulb.” If you’ve been frustrating in the past with the financial advice you’ve received, if you’ve found 1,000 different ways NOT to plan successfully for your financial future, we hope that you’ll consider reaching out to us. Our mission at Annuity Gator is to provide unbiased information about retirement income planning so investors can feel confident about making good financial decisions. Our loyalty isn’t to any single insurance company or agency, our loyalty is to you. Let us help you shop around and compare. Tell us what you need, and we’ll tell you whether or not we can help improve your financial standing.
