Finance the Retirement You Want – Step-by-Step Advice from a Retirement Planning Advisor

Are you struggling to finance the retirement you want? Are you afraid you haven’t saved enough and wonder what you can do to catch up? Here is some solid advice from a retirement planning advisor to help you get started.

Make a Realistic Assessment of How Much You Need for Your Retirement with a Retirement Planning Advisor 

Often, the concern comes from not having the information you need. But chances are that if you think you haven’t saved enough, you probably haven’t. A comprehensive assessment of what budget your retirement plans require is the place to start. Meet with a retirement planning advisor to lay out the details of how you want to live when you retire. Then, create a realistic, hypothetical budget that would support your retirement lifestyle. Planning with an advisor helps you reduce spending while you are working, creating the opportunity to save and invest more. 

Invest More – Working with a Retirement Planning Advisor

The further away you are from your retirement, the more opportunity you have to capitalize on your investments. Your 50’s are typically peak earning years, so the IRS lets you put more money into retirement plans when you turn 50. No matter how old you are, top up all the plans that offer tax incentives, employer matching, and other perks, then start with more aggressive investments to make up for lost time.

If you can create additional income to increase your current savings rate and augment your retirement funds, it could be beneficial to you. Many a retirement is partially funded by writing a book, teaching at your local college part-time, and leveraging subject matter expertise for more money. If you can supplement your income, and then invest those earnings as your retirement planning advisor suggests.

Protect Your Income

Guarding earning potential is imperative at any age. Accidents and serious illnesses happen! Don’t let an unexpected inability to earn your income pull you away from your savings path. When you have to deal with both expensive medical bills and lost wages, your savings disappear in a hurry. Review and top up your disability insurance through your employer and your individual plan. 

Take the time to go over all of your policy options to decide on the best coverage for your situation. Check out the details, like how long it takes for benefits to start paying out if you are sick or injured. The longer that elimination period, the greater the out-of-pocket expenses you pay before your benefits kick in. Talk to your retirement planning advisor about setting up specific contingency plans. 

Real Estate – Downsizing to Invest 

Some real estate is an excellent investment, and holding it will help fund your retirement. Other times, holding real estate, especially as a principal residence, may tie up a lump sum and create ongoing expenses that reduce what you have available to invest. Think about how downsizing could save thousands a year in taxes, interest, utility costs, insurance, maintenance and repairs. Consider changing locations and not just moving into a smaller home. Many times, moving a few minutes out of town can save tens of thousands in the property’s purchase price. All that money can be redirected into your retirement savings. 

Now is the time to contact a retirement planning advisor to start taking the positive steps you need to move closer to the retirement you want.