Financial Resolutions for Individuals Nearing Retirement

The new year brings a fresh start and a chance to take control of your financial future. Check out our blog for financial resolutions to help you pursue your retirement goals and feel confident in your financial security. From fully funding your emergency fund to working with an Enduring Wealth Advisor, we’ve got you covered. Let’s make this year the year you confidently pursue your retirement dreams!

As retirement approaches, the excitement builds, but it’s also natural to have a few financial worries creep in. You may be concerned about the rising cost of living or the inability to live comfortably throughout retirement. Maybe you wonder if you have saved enough or if your finances are on track. Perhaps you feel nervous, like you have missed something crucial. Many people face similar worries as they approach their golden years. The good news is that the new year provides a fresh start—a chance to take control of your financial future and make some resolutions that will help you pursue your retirement goals.

Work on Fully Funding Your Emergency Fund

Like when you were working, emergencies can still pop up during retirement. But here’s the thing—since you might be on a tighter budget, having that emergency fund becomes even more crucial. Whether it’s sudden repairs needed for your home or unexpected medical bills, readily available money can ease the stress and help you tackle these surprises without any worries.

So, here’s the goal: fully fund your emergency fund. But how much should you save? A good rule of thumb is to aim for three to six months of expenses. That way, you’ll have a comfortable cushion to fall back on when life throws you a financial curveball.

Additionally, having a fully funded emergency fund may reduce stress and cover potential pay gaps when you transition into retirement. Frequently, after receiving your last paycheck, there is a gap before receiving your first retirement check—and in rare cases, the gap may be multiple months.

Continue to Save

I get it—your savings may be in a good place right now, but that doesn’t mean saving should stop. It’s important to keep saving to help your money grow and expand the safety net for unexpected emergencies or pesky inflation. The rule of thumb is to aim to squirrel away between 15 and 20% of your gross income into savings every year, with 10 to 15% going into retirement savings and 5 to 10% towards other goals. Of course, putting in more is even better and may help you save a little on your end-of-year taxes. Just as important as continuing is ensuring your savings are appropriately invested and aligned with what you want to accomplish.

Make a Pre-Retirement and Post-Retirement Budget

Well, let’s talk about preparing and sticking to a budget. It’s like having a GPS for your money, guiding you in the right direction. Here’s the deal: you’ll want to create a budget that covers your current financial situation and considers your post-retirement life. Think of it as a financial roadmap, helping you see how much more you need to save. Sure, there are some general rules that financial planners use to estimate your needs after you retire, but creating a post-retirement budget can benefit both you and your advisor.

Pay Off Your Debt

Picture this: a retirement without stress or debt payments and more funds to do everything you love. Sounds sweet, right? Suppose you’re carrying a heavy load of high-interest debt. In that case, one option is consolidating your debt into a low-interest loan. By consolidating, you could lower your interest rate and create a repayment plan that works for you. Optimally, the plan would be to pay off the debt before you retire. Another trick is taking advantage of zero-interest balance transfers, which may allow you to pay down your debt faster. Just imagine how it would feel to owe no one and be debt-free.

Now, I know these strategies sound enticing, but let’s take a moment to reflect. It’s important to crunch the numbers and assess if these options align with your financial goals. Consider the terms and conditions of the low-interest loan or balance transfer offer, and make sure it fits your plans well. Keep in mind that these moves only shift debt around. It would be best to have focus and a strategy to eliminate debt, such as the debt snowball.

Freeze Your Credit

Identity theft is rising; don’t let its sneaky grip get you. It can wreak havoc on your finances and tank your credit scores. Here’s one resolution you should consider: freezing your credit.

You might be thinking, “What about those credit monitoring services? They have some benefits, especially if they offer identity theft insurance. But here’s the catch: they’re more like the police coming after the bad guys have struck. It’s like calling 911 after your car is gone. Protective, yes, but reactive.

Let’s level up your identity security with the freeze-your-credit power move. It’s a proactive measure to help keep identity thieves at bay. Think of it as upgrading your home’s security with state-of-the-art locks and alarm systems to help prevent theft.

Sure, freezing your credit may add a tiny bit of inconvenience when you need to take out a new loan or open a new credit line. Isn’t it worth protecting yourself from the evil clutches of identity theft? Plus, it’s like adding an extra step to opening new credit lines, which means you’ll likely make more thoughtful decisions.

Work with an Enduring Wealth Advisor

If you do not have a financial advisor, make it a resolution to start working with one, like us, as retirement draws closer. Let’s break it down for you. When you partner with a financial advisor, you’ll gain access to their knowledge and experience in retirement planning. They will work with you to create a personalized retirement strategy that considers your goals and unique circumstances while making adjustments to help keep you on track. Plus, we can navigate the investment landscape for you, working hard to grow and protect your money and assets. Remember things like tax planning, risk management, and contingency planning. As you near retirement, choosing to team up with Enduring Wealth Advisors® means having a trusted team of allies who’ll guide you in pursuing financial security and a fulfilling retirement.

Our mission is to identify goals and nurture behaviors so that we can confidently discover and pursue dreams together. If you’re looking for financial guidance, schedule a call today.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial and Enduring Wealth Advisors® makes no representation as to its completeness or accuracy.

Securities are offered through LPL Financial, Member FINRA/SIPC. Investment advice is offered through Enduring Wealth Advisors, LLC, a registered investment advisor. Enduring Wealth Advisors, LLC and Enduring Wealth Advisors, INC are separate entities from LPL Financial.

This article was prepared by WriterAccess.

Edited by Mark R Tracy, MBA, CFP® from Enduring Wealth Advisors® in collaboration with and Grammarly

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