As a financial advisor, I frequently hear the question, “Am I on track for retirement?” It’s a common concern for those nearing retirement age. Many people struggle with confidence in their financial plans and worry that they may not be on the right path. That’s where I come in. I feel a calling to help instill confidence in individuals unsure about their financial goals. Whether it’s retirement, education for your children, or other major expenses, every goal can be planned for, and having a plan is key to feeling secure.
Living Within Your Means
Living within our means is crucial for a successful financial plan. I like to call it creating a positive cash flow. If you find yourself spending every dollar you earn, it’s impossible to build savings or a nest egg for the future. By prioritizing giving, saving, and investing, you can resist the temptation to overspend and naturally build financial security.
Paying down debt is also essential for a healthy financial outlook in retirement. While retiring with debts like a mortgage or car loan is possible, it’s much easier to maintain a comfortable cash flow without those monthly payments. If you do have debt, don’t let this discourage you. Working together with your financial advisor, you can create a plan to manage and eliminate it as quickly as possible.
Setting Your Own Goals & Guidelines
Contrary to popular belief, there isn’t a magic number you need for retirement savings. The amount you need depends on your monthly or annual expenses. A common guideline is to limit annual withdrawals from retirement investments to 4% of your balance.
Additionally, if you have other sources of income like Social Security or pensions, you may not need to rely as heavily on your investments. The most important milestones to aim for are having enough income to cover your expenses and being debt-free. Retirement and financial decisions become much easier when these goals are achieved.
Planning Ahead
Financial planning is a process of setting goals, assessing your current situation, and taking steps to reach those goals. Unfortunately, many people neglect this essential planning and find themselves unprepared for the future. By dedicating time to think ahead and create a plan, you can significantly improve your financial well-being.
Getting Essential Support
I’ve found that I provide the most assistance by simply listening to my clients and discussing their hopes and concerns. Just one or two conversations per year can make a world of difference in establishing and maintaining a solid financial plan. My team and I spend a great deal of time analyzing and drafting customized plans for our clients. While some individuals manage their finances independently, our guidance helps keep our clients accountable and often leads to achieving goals sooner than expected.
Life, including your financial life, is a journey from start to finish. While we can’t predict the future, we have control over how smooth that journey can be. Setting financial goals is like choosing a specific, more desirable path. Working with a financial advisor or planner can provide invaluable support in determining the best track to reach your goals.
At TruStone Wealth Management, our top priority is to provide our clients with the support and resources they need to feel confident in their financial future. Contact our friendly team to learn how we can help you build the life you want today.
Together, we can work to keep you on-track towards your financial goals.
Request a consultation with me to learn more.
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