Optimizing Your Financial FutureSubmitted by JMB Financial Managers on November 20th, 2019
Whether you are already taking advantage of your employer’s retirement plan, still considering it, or have different investment methods in place to save for retirement, I encourage you to think more broadly about your retirement, and prepare for it between now and then. Today I’d like to share some timeless financial principals with you to apply to your personal situation.
Consider the Impact of Short-Term Issues
We all deal with short-term issues in our day-to-day lives: creating a budget, paying off debt, creating an emergency fund, taking out a car loan, saving for a college education, saving for the down payment on a home – and much more. We can get so bogged down in the here and now that we neglect to consider how these short-term issues impact the long-run results of our financial lives.
For example, the failure to create an emergency fund often results in taking on new debts when our car is totaled in an accident, when we are injured on a ski trip and have deductible and out-of-pocket expenses to pay, when the tree falls on the roof and suddenly you are re-roofing the house, or any other number of unforeseen incidents. This new debt then swallows resources that would have been going into an emergency fund, paying off other debts, or going into the college fund, for example. Ultimately these incidents also detract from monies that can help us afford a secure and comfortable retirement.
Tie Short-Term Issues to Long-Term Goals
Working with a certified financial planner and having a written financial plan comes in handy, as all these short-term issues and events can be managed to mitigate the long-term impact upon that secure and comfortable retirement we all want someday. For example, are you scrimping on retirement savings to put extra money away for a college education? You may not be aware that you can borrow money for a college education, but that you can’t borrow money for a secure and comfortable retirement.
A certified financial planner can help you see opportunities and identify issues that you may never have thought of, and provide an alternate viewpoint. Your decision might not change from having this input, but it helps you make more educated decisions along the way.
A secure and comfortable retirement can be easier to achieve if you look beyond the obvious questions about how much to contribute to your retirement plan, and how much does your employer match. Taking a “big picture view” can help you make better short-term decisions that help you optimize your financial future, and that secure, comfortable retirement you want for yourself someday.
Are You Ready to Optimize Your Financial Future?
If you’re ready to take the next step in securing a comfortable retirement, schedule a complimentary consultation with us today to learn more about our personalized approach to guide you through the different seasons of life.