Retirement seems impossibly far away when you are working on building your career in your thirties. Why should you start putting away money for retirement now when there’s still so many other things you’d rather be doing with your money? It is because time has a way of creeping up on us.
You can plan your retirement if you calculate how much money you’ll need and how you’ll get there. Of course, you should take advantage of company matching, retirement plans and various tax deductions available, when saving for retirement. Don’t wait until your 40s, or 50s, to try to catch up. That will be painful, or worse, impossible.
According to a Forbes’s article, “3 Steps To Financial Fitness In Your Thirties,” it is advised that when you start to accumulate wealth, be sure someone is watching your investments and that those investments are suitable for your time frames and financial goals. Here are some tips for how you can make saving for retirement a reality.
Work with a fiduciary advisor you think can help improve your situation. This should be someone you trust, and most important of all, who puts your interests first.
If you are accumulating assets, make sure ou and your family are covered by having the insurance policies.
Another form of protection is an emergency fund. If you don’t have one, start by regularly putting some amount of money into a non-retirement account. Even if it’s a small amount, it can help in an emergency. If you were to be laid off, chances are that your unemployment benefits would not be enough to pay the rent or make a mortgage payment.
If you’re single, you should also protect yourself. Many life insurance policies have living benefits that can protect you if an emergency happens. You may also be able to use cash value life insurance to partially fund your retirement.
Finally, it’s critical that you think about estate planning.
If you think you’re too young to need an estate plan, you’re wrong. Your estate plan should include a will, Powers of Attorney, health care proxy and, if you have minor children, a nominated guardian for minor children should be named in your will. If you’re married, your spouse will need to have Powers of Attorney and Advanced Directives if you should become disabled or incapacitated. And if you’re living with someone, no matter how long you’ve been together, they won’t have any legal right to represent you or to inherit any of your property or assets, unless you specifically include.
It is not too late to start your planning. Call Grimaldi and Yeung now to schedule an estate planning consultation to custom design a plan for you.
Reference: Forbes (December 17, 2018) “3 Steps To Financial Fitness In Your Thirties”