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Financial Planning Tips For a Lifetime

 

Wherever you are in life, these tips may help you get on solid financial ground and help you stay there.

 

Get specific with your goals.  When it comes to your money, you need to have specific goals.

Focus on needs, not wants​.



Wish lists can be wonderful things to have, as long as you don't use your credit card or tap into your home equity line to turn every wish into immediate reality.  Understand the difference between niceties and necessities.  Be willing to forego what you don't really need to stay on plan.

 

Keep it simple.  Focus on what's most important to you.  Is it having enough money for retirement, financial security for loved ones, college?  You decide and then take simple, straightforward action.

 

Know your weak points.  Understand your own personal psychology and avoid the triggers that will make you spend more or save less.  Know where your money goes and develop a budget.  Include savings in your budget and plan for major purchases.

 

Be realistic.  Start small and start early.  Remain consistent.

 

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”        Albert Einstein

 

 

Be prepared.​
 

Life is all about change.  Be ready for things that may come out of the blue that can affect your financial plans and goals.  Planning for the unexpected can make seemingly disasterous events such as a job layoff or a house fire far less devastating than they might otherwise be.  So, save for emergencies...   a good rule of thumb is to have a minimum of six months of salary available in your savings account.

 

Know when you need advice and how to get it.  Get help from a Certified Public Accountant for more complete financial planning needs.

 

Consult a financial advisor when:

  • getting married

  • purchasing or selling real estate

  • getting divorced

  • having a baby or adopting a child

  • buying or selling a business

  • developing an estate plan

  • coping with the death of a spouse/family member

  • receiving an inheritance/financial windfall

 

Protect your credit and keep good financial records.

Plan for retirement.​



With a little planning, retirement can be a time to enjoy the good things in life.

 

Some retirement planning musts include:

  • take advantage of market upturns by saving for retirement early

  • take full advantage of what your employer has to offer including  pension contributions and matching dollar opportunities

  • invest the maximum allowable amount in an IRA/401(K) per individual and do it every year

  • be realistic about needs during your retirement years; you will probably need about 70% of current income to finance your retirement

  • consider retiring later in order to increase Social Security benefits; the longer you work (up until age 70) the greater your monthly benefits

  • anticipate needing income for a minimum of 20 years if you retire at age 67

 

 

 

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