Are you a member of Generation X? Generally defined as those born between the mid-1960s and early 1980s, today’s Gen Xers are in their 40s and 50s. In fact, retirement is approaching on the horizon for the oldest members of the generation. According to a new study from Transamerica, many Gen Xers aren’t confident about their chances in retirement. The study found that only 12 percent of those in Generation X feel comfortable about being able to retire. The average Generation X household had only $69,000 in retirement savings.1 Are you a Gen Xer who’s behind on retirement? The good news is there’s still time to get back on track. Depending on your age, you may have 20 years or more to save. That’s plenty of time to prepare as long as you stay disciplined and take action quickly. Below are a few questions to ask yourself as you plan your retirement strategy? What is your retirement savings goal? How much do you need to save for retirement? If you don’t know the answer, that’s a good starting point for your catch-up strategy. Think of your retirement savings goal as the destination at the end of a long road trip. You have to know where you’re going so you can track your progress along the way. You can estimate your retirement savings number by developing a projected retirement budget. Obviously, you can’t predict all your spending in retirement, but you can create an informed estimate based on your current spending and inflation. Then project your sources of retirement income, like Social Security or your pension. Do those sources cover all your estimated expenses? If not, you’ll have to fund the rest out of your savings. Assume that you’ll be retired for several decades, and multiply your shortfall by the amount of years you’ll live in retirement. The result is a ballpark savings goal. Keep in mind that this is a very simple way to approach the calculation. Your financial professional can help you develop a more precise goal that includes factors such as inflation, investment returns, long-term care costs and more. What expenses can you cut so you can save more? Perhaps the most effective way to catch up on retirement is simply to spend less and save more. A budget can help you accomplish just that, as it helps you manage your spending and track your progress toward large financial goals such as retirement. Unfortunately, nearly 60 percent of Americans don’t use a budget.2 If you’re among that group, now may be the time to make a change. You can use an online budgeting program or a simple spreadsheet, or even a pencil and paper. Look for areas to cut back, like on entertainment and dining out. Perhaps you could consolidate debt and reduce your interest costs. Every dollar in spending you can cut is a dollar you can allocate toward retirement. What risks could threaten your retirement? Nothing can derail a retirement strategy like an unexpected emergency. It could be a costly medical procedure or a loss of employment. The market could take a sudden downturn. Any number of risks could throw you off track. Fortunately, you can take pre-emptive steps to minimize your risk. Disability insurance can help you cover financial challenges should you become unable to work because of injury or illness. Life insurance protects your spouse’s retirement should you unexpectedly pass away. You can also use tools such as annuities to protect you from market downturns and to guarantee* your future retirement income. Ready to develop your retirement strategy? Let’s talk about it. Contact us today at Binversie and Associates. We can help you analyze your needs and goals and develop a plan. Let’s connect soon and start the conversation. 1https://www.thinkadvisor.com/2016/08/23/transamerica-survey-highlights-american-retirement/?slreturn=20180616152205 2https://money.cnn.com/2016/10/24/pf/financial-mistake-budget/index.html Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. Securities offered through Registered Representatives of Cambridge Investment Research Inc., a broker-dealer member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Binversie & Associates and Cambridge are not affiliated. The information in this email is confidential and is intended solely for the addressee. If you are not the intended addressee and have received this email in error, please reply to the sender to inform them of this fact. We cannot accept trade orders through email. Important letters, email, or fax messages should be confirmed by calling 920-684-7801. The email service may not be monitored every day, or after normal business hours. *Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. 17845 – 2018/7/30 Thinking about retiring? For many workers, retirement is the ultimate financial goal. It’s when you get to leave the working world and live life on your terms. However, the timing is important. Retire too early, and you risk running out of money. Retire too late, and you may lose out on valuable years that you could spend enjoying yourself.
There’s no magic formula for determining the right time to retire. Finances should be an important consideration. So, too, should your health and happiness. You also may need to consider family obligations or perhaps other dreams you may want to pursue after you leave the working world. Not sure if you’re ready? Below are a few questions to ask yourself as you make your decision. If you don’t know the answers to these questions, you may need to do some more planning. A financial professional can help you develop your strategy and solidify your retirement plans. What will you do with your free time? You’ve probably been looking forward to retirement for years, but have you given thought to how you’ll spend your free time? Many retirees initially enjoy their freedom but soon grow frustrated or bored. Some even suffer from depression or anxiety because they feel like they no longer have purpose. Boredom can have financial consequences. You may choose to fill your free time with costly activities like shopping, travel and dining out. The risk is that you spend too much in the early years of retirement. If you don’t know how you’ll spend your time in retirement, now may be the time to think about your options. It’s often helpful to write about your ideal day in retirement. How would you spend your time? What activities are most important to you? Think of ways you can enjoy retirement without excessive spending. When should you file for Social Security? Social Security is likely to play an important role in your financial picture. It’s one of the few retirement income sources that’s guaranteed* for life, so it can provide much-needed financial stability. Your benefit amount is largely dependent on when you file. You can file as early as age 62. If you file before your full retirement age (FRA), however, your benefit could be reduced as much as 35 percent.1 On the other hand, if you file after your FRA, you could increase your benefit. Social Security offers an 8 percent annual benefit increase for each year past your FRA that you wait to take benefits. If you can afford to delay your benefits, this could be a way to increase your retirement income.2 There’s no universal right answer on when to file for Social Security. Your decision should be based on your unique needs and goals. A financial professional can help you develop your strategy. What’s your plan B? You may have a strategy for how to fund your retirement. As you likely know, however, plans are disrupted all the time. The market could take a downturn, limiting your ability to generate income. You may face serious illness or even a need for long-term care, and the related costs could drain your retirement assets. What’s your backup plan to deal with these potential risks and more? You may want to talk to a financial professional about how you could better manage risk. For example, you could use an annuity to guarantee* your income or minimize volatility. You could consider long-term care insurance to reduce your out-of-pocket costs. Ready to plan your retirement strategy? Let’s talk about it. Contact us today at Binversie and Associates. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation. 1https://www.ssa.gov/planners/retire/agereduction.html 2https://www.ssa.gov/planners/retire/1943-delay.html Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. Securities offered through Registered Representatives of Cambridge Investment Research Inc., a broker-dealer member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Binversie & Associates and Cambridge are not affiliated. The information in this email is confidential and is intended solely for the addressee. If you are not the intended addressee and have received this email in error, please reply to the sender to inform them of this fact. We cannot accept trade orders through email. Important letters, email, or fax messages should be confirmed by calling 920-684-7801. The email service may not be monitored every day, or after normal business hours. *Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. 17845 – 2018/7/30 |
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