Three Things You Should Know About Retirement Readiness
In recent years, the term "retirement readiness" has become a part of everyday investing jargon. The phrase is usually in reference to an employee’s 401(k) or other employer-sponsored retirement plan—and whether it is sufficiently funded for that person's lifestyle in retirement.
Retirement Readiness can help you discover how much you need in retirement in order to live comfortably, the amount of income your investments are likely to generate, and whether or not these two numbers match.
Retirement Readiness focuses on planning and is designed to help you understand all the factors that impact your financial future so that you can make better financial and investing decisions.
What are the three things to know about retirement readiness?
Three simple but powerful things to know about retirement readiness are: 1) the importance of having a financial plan, 2) the helpful guidance of a financial advisor and 3) and the need for investment discipline. Let's break things down in more detail.
The importance of having a financial plan
A financial plan can be useful as you plan for retirement. Whether your retirement is twenty years away or just ten, a formal financial planning process can help lay out goals and strategies that will keep you on track throughout your working years. Figuring out what your savings and spending needs are can be difficult because it requires careful planning, a thorough understanding of the stock market—and lots of patience.
A plan can determine in detail your total financial assets, income, and expenses. A thorough and prudent financial plan will gather all of the necessary details and what needs to happen and when as it relates to your retirement--and whether or not you are ready.
The helpful guidance of a financial advisor
A financial advisor can serve as a veritable guide. They can help you navigate the various options and possibilities that are available to you. A financial advisor will work with you to create a plan that is tailored specifically for your needs and goals. They can help you make smart decisions about investing, saving for retirement, protecting assets from taxes—and much more.
The other major benefit of working with a financial advisor is that you have someone who can help keep your emotions in check as it relates to investing and saving. So many times, investors fall prey to the noise of Wall Street and slick investment marketing. This can result in making poor investment decisions that impact your portfolio's returns--buying high and selling low!
The need for investment discipline
Regular, consistent investing can help you gradually build up your nest egg so that when retirement time comes, you're ready. This sort of consistent saving and investing is the result of a plan implemented with discipline and focus.
I often hear from investors that they don't have enough money to invest. These folks are surprised when I tell them that even investing a small amount of money on a regular basis can help build up their nest egg over time. The key is to find an investment strategy that's right for you and your situation, then stick with it over time.
Investment discipline will help you not to fall into the common traps that people step in when they invest. Investment discipline focuses on the long term by avoiding short-term speculation or chasing trends.
The Importance of a financial plan and trusted advisor
Over the past few months we have written about how valuable and necessary a financial plan is especially in preparation for retirement and when you enter your golden years. Trying to figure out what your savings and spending needs are can be a daunting task since it requires careful planning and thorough understanding of the stock market.
But what happens if you don’t have a financial plan, or worse yet, if you have one but it is not being followed? In these situations, people are often left with the feeling that they are “winging it” when it comes to their finances. This is where a trusted advisor comes in.
Retirement Readiness can feel like an overwhelming, hard to understand task. The key to successful retirement planning is to have a financial plan in place with a trusted advisor who will help you navigate the waters of your financial future. This will allow you to feel confident in your decisions and know that they are being made with your best interests in mind. Lastly, the investor virtue of financial discipline will help ensure that you can meet your retirement goals. If you’re not sure where to start with your retirement planning, contact us today. We are here to help!
Kiaros Advisors is an independent financial advisory firm who works with you to provide the best financial advice possible. We believe in being transparent and providing clients with a detailed financial plan so they can reach their goals with confidence.
Investment advisory and financial planning services offered through Kiaros Advisors, LLC, a registered investment advisory firm. Insurance services offered through Peter Kisver are independent of Kiaros Advisors, LLC. Kiaros Advisors, LLC does not give legal or tax advice.