Why it’s so important to have a plan
Having a plan really does pay off.
Research from T. Rowe Price found that individuals with a formal financial plan had two to four times more wealth when entering retirement compared to those without one.
With the help of a qualified professional, like those found through WiserAdvisor, you can easily plan when, where, and how you want to retire.
WiserAdvisor is a free online service that helps you find a financial advisor who can co-create a plan to reach your financial goals. Just answer a few questions, and the extensive online database will match you with two to three vetted advisors based on your answers.
You can view the advisors’ profiles, read past client reviews, and schedule a free consultation with no obligation to hire.
Even if you’re confident in the amount you’ve saved for your retirement, LaVigne insists “it is critical to understand how those assets will be able to fund your life after you retire.” That’s why individuals with higher [net worths should also consider consulting a professional to make the most of their nest egg and the rest of their assets and portfolio.
Arta Finance gives you access to a digital wealth management platform with exclusive financial strategies for public market and alternative investments. These include private equity, quantitative strategies, and venture capital investment opportunities.
You can think of them as an accessible family office which will enable you to make the appropriate financial plan for your best retirement.
How to add to your retirement income
Another big concern among the Americans surveyed is how to best take distributions from their retirement savings when they do retire, with 45% revealing they’re unsure of the best method.
This question is best answered with the help of a financial advisor, and it will largely depend on the type of accounts that you have.
With most IRA accounts, you will pay taxes on the funds you take out. So, the timing of these withdrawals really matters for the potential income tax you’ll incur. However, with a Roth IRA, you are contributing to your account with after-tax income, which means your withdrawals at retirement age won’t be taxed.
This is why financial guru Suze Orman wrote that Americans should be putting “every single cent” into a Roth account in her book, "The Ultimate Retirement Guide For 50 Plus".
And if you have a gold IRA, you’ll want to plan for whether you’d like your withdrawals to be as income, or as the physical asset.
Opening a gold IRA with the help of American Hartford Gold offers both types of withdrawals. When you open a gold IRA with AHG, you own the physical metals — and your assets are stored in a secure depository.
When you sign up with American Hartford Gold, you'll be eligible for an offer to receive up to $15,000 in free silver, along with the assurance of the best pricing through their price match guarantee.
No matter if your retirement plan involves investing in gold, or its value in cash, the investment is an opportunity to diversify your portfolio and stabilize your finances.
Make sure your family is secure
Finally, a plan is important because it provides your loved ones with security, too.
For workers, an emergency fund doesn’t just safeguard against a job loss. It can also be the ticket to covering surprise expenses without going into debt. And being retired doesn’t make you immune from surprises.
For instance, if you’re concerned that Medicare might not cover all your health care expenses or that you want a little more financial security in retirement, there are other insurance options you can consider
A life insurance plan can provide an extra layer of support, and a financial buffer, for you and your family.
If you’re looking for a policy that will last a lifetime, with a locked-in premium and a cash value that can be tapped into while the policyholder is still alive, a whole life insurance policy from Mutual of Omaha might be worth considering.
With coverage amounts ranging from $2,000 to $25,000 (in WA, $5,000 to $25,000), you can rest assured that your family will always be ready to cover unexpected expenses. It only takes five minutes to fill out a quick online application with your personal and beneficiary information.
Once you register, not only will you be guaranteed coverage, but your benefits will never be reduced due to age or health. Plus, no medical exams or health questionnaires are needed to join.
Another option that can help your family in the event of your death is term life insurance. This is a type of life insurance that offers coverage for a predetermined period, known as the "term," that typically ranges from 10 to 30 years.
Term insurance is usually a less expensive and more flexible option. If the insured individual dies during this term, the policy pays a death benefit to the designated beneficiaries.
Young families and busy professionals looking for fast and affordable insurance can easily connect with Ethos and get term life insurance in 5 minutes, with no medical exams or blood tests.
With Ethos Insurance, you get a policy with up to $2 million in coverage, starting at just $2/day. Ethos’ application process ensures you get flexible coverage options quickly and transparently, allowing you to focus on what matters most.
Enjoying life on a fixed income
Having a suitable retirement plan isn’t only important for your financial goals, it’s just as critical for your peace of mind.
Of those surveyed by Allianz Life, 48% worried about living too frugally and not enjoying retirement as much as they should. Without a clear set of steps for how you want to prepare for — and live — in retirement, you’re subjecting yourself to unnecessary uncertainty. You may be spending more frugally than necessary, or you might not be frugal enough to make those savings last.
Once you have your plan, investing while you spend is another way to double down on savings for the future.
Acorns automates investing and saving to simplify the process of setting aside extra funds.
When you make a purchase on your credit or debit card, they will automatically round up the price to the nearest dollar and place the excess cash into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future.
When you sign up now, you’ll get a $20 bonus investment, too.
