Tips to Financial Wellness

Your Back-to-Retirement List

It’s hard to believe, but soon Labor Day will be in the books. The weather will start to turn a little cooler, college football will return, and the kids will be back in school. For me, it’s always been the kids returning to school that marked the end of summer. Gone are the late bedtimes, flip-flops, and outside dining.

But rather than complaint, I decided to look at the glass as half-full and then ask myself this question: shouldn’t every person have a Retirement List that they go through, much like a Back-To-School List? So, what should this Retirement List look like?

Your Back-to-School List

Now some of the items on the list make sense to me. Pencils and pens and calculators all seem like they’ll get put to good use. But does my 6th grader really need six different colored pocket folders? And not just any pocket folders. He needs the shiny ones with two pockets and a way to hold the loose-leaf paper.

So all this got me thinking: did my parents go through this with me? When I asked them, they just laughed.

You see, for us, going back-to-school-shopping meant buying clothes, not supplies.

So what happened?

Your Retirement List

It’s hard to believe, but soon Labor Day will be in the books. The weather will start to turn a little cooler, college football will return, and the kids will be back in school. For me, it’s always been the kids returning to school that marked the end of summer. Gone are the late bedtimes, flip-flops, and outside dining.

But rather than complaint, I decided to look at the glass as half-full and then ask myself this question: shouldn’t every person have a Retirement List that they go through, much like a Back-To-School List? So, what should this Retirement List look like?

1

Review your current financial situation by assessing your income and assets versus your expenses and liabilities. Make a spreadsheet.

2.

Determine a realistic amount to contribute regularly to your employer-sponsored qualified retirement plan, e.g., a 401(k) plan. Of course, if possible, you want to maximize allowable contributions and take advantage of the company match, if offered.

3

Make a real plan toward reducing your debt. Pay off the highest interest rate bills first and your large bills as soon as possible. Curb your spending somewhere – maybe your daily Dunkin’ Donuts run – and apply that to your debt. And avoid taking on any new debt that could carry over into retirement.

4

Consult with a qualified professional about your life, health, and disability income insurance policies to determine the amount of coverage for your current and future needs.

5

Determine how much you can expect to receive in retirement from pension plans, veterans’ benefits, or Social Security. To get an estimate on your future Social Security benefits, visit www.socialsecurity.gov.

6

Make a list of which expenses are likely to decrease after you retire (clothing, commuting, etc.) and which are likely to increase (medical, travel, etc.), and then make sure you plan accordingly.

Schedule a visit with your financial planner!

Regardless of what state the economy is in, one of your most significant long-term financial challenges may be planning for your retirement savings to outpace inflation.

Therefore, it is always important to consider inflation, not only as you save but also as you make purchasing decisions.

Your financial advisor can help you plan.

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