Retirement Planning: Investing in Your Financial Future

Are you investing in your financial future? Whether you entered the workforce or worked for several years, make retirement planning a high priority especially for women. On average, American men will live till the age of 76, while American women live till 81. Today, women are paid only 82 cents for every dollar their male colleagues make, which is all the more reason to invest in a strategic retirement plan. Here are simple things you can start doing today to get on the right retirement path:

Start Saving Now

Your biggest asset is time. Saving money takes time and patience. Setting aside money for retirement is an ongoing process and a monthly commitment. The sooner you adopt the habit of saving monthly, the more you’ll get back. The growth of your investments will make your retirement savings even more valuable. Contribute a fixed amount of money on your own or automate your retirement contributions with a 401(k) plan through your employer. If your job doesn’t offer a 401(k) plan, you can choose to invest in your own Individual Retirement Account (IRA).

Calculate Your Future

Most financial experts recommend that you set aside an emergency fund of three-to-six months’ worth of living expenses before you start saving for other goals. This financial formula can also be helpful in balancing financial responsibilities: Spend 50 % of your paycheck on the “must-haves,” 30 % on “wants” and use the remaining 20 % to service debt and save money.

You can also organize your financial priorities into time frames: your short-term money (“must-haves”) includes money for necessities such as food, housing, travel, healthcare, insurance, and emergencies. Mid-term money (“wants”) is for expenses including travel, entertainment, clothing, house repairs, education, etc., and long-term money is the money you save that accrues over time to replenish short- and mid-term funds.

Get Financially Fit

Just like any fitness plan, it’s never too late to start. It’s only too late if you don’t start at all. The more financially fit you become, the more empowered you will be to make wise decisions with your money. Since retirement is something you buy into, think of your budget as a “spending plan” and stick with it. Exercise your right to save money and develop your assets. Visit a financial advisor to help you personalize a plan that suits your specific financial needs so you can enjoy the financial future you deserve.

Be Insured to Be Assured

It’s impossible to predict the future, but it’s essential to prepare for it. There are a variety of insurance plans that help you save money for retirement costs—health insurance, life insurance, accidental death, disability, long-term care, etc.  Insurance guarantees protection for yourself and your family when the unexpected happens, instead of dipping into your retirement savings. So, paying a little now saves you from paying massive bills later.

Looking for more security in your future? IAW member, Evelyn Clark, is a Liscensed Allstate Insurance Agent who enjoys helping families get protected in the event of unexpected life changes. Life is 10% of what happens to you and 90% of how you respond” said Clark. Connect with her through the IAW community or check out our other amazing members here.

  1. Cindy Bengtson

    Excellent advice. The best way to secure a great retirement fund is to start savings EARLY. Protecting your cash flow allows you to stay on track to save for retirement. Supplemental insurance plans are often overlooked but they are a great way to provide cash in the event of a medical “event” and to create an instant emergency fund! Many insurance companies offer accident, cancer, critical illness, disability and more such plans.

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