Is it Possible to Have a Retirement in Today's Economy?
If you find yourself asking, "Is it possible to have a retirement in today's economy?" the good news is yes. The ability to retire or not or retire the way you want to retire is less about the current condition of the economy and more about the state of your personal economy.
You see, many people who have taken care of their finances by saving plenty, keeping a close eye on their investments, and living within their means, aren't being harmed by the current state of the economy. Yes, inflation is eating away at your retirement accounts, but if you invest wisely over the years, even this will not destroy the retirement you desire.
Is it possible to have a retirement in today's economy? Only if you are willing to do your part to make it happen. Of course, the earlier you start your retirement planning, the easier it will be. I did a post a while back on how compounding works in your favor the younger you begin investing. Click HERE to read it.
You will have more time to save you will also have more time to rebound if your plans go astray. Here is another previous post outlining how Millennials can prepare and save for their RETIREMENT.
A job loss or an illness can be all it takes to make it necessary for you to have to dig into your retirement savings to keep afloat. So, the earlier you start, the more time you will have to potentially regain this money you have been forced to use for your day-to-day expenses.
I don't know you or your situation, so I can't offer you accurate advice in this short post. What I can do, however, is to offer you some broad guidelines that will usually apply to most people.
Also, this post may provide you with a good starting point for getting your financial affairs in order. Here are a few points to keep in mind:
- If you choose to find a planner to help you get your finances and your retirement planning on track, make sure you choose carefully. My advice is to seek out someone similar to myself, a fee-only Registered Financial Consultant (RFC) who acts as a fiduciary. That way, you will not be sold what makes the planner a commission, but rather you will work with one that must keep your best interests in mind.
Not all planners are created equal. If you want to ensure you get the best possible advice for yourself (and who wouldn't), you may want to stick with an independent or an RFC planner. These planners are part of a group that ensures that they have a fiduciary standard they have to live up to, and many RFCs also are designated for outstanding ethics.
In other words, they are legally bound only to do the things that will help you. By law, they must do everything in their power to provide you with the best possible advice.
Now, some of you may be thinking, "but don't all advisers work in my best interest?" well, unfortunately, that is not how it works.
You see, many so-called financial advisers make their money on commissions. These commissions are only generated when you buy or sell a financial product. So, if you don't buy or sell anything, they don't make any money. This is the case when you work with a planner associated with any insurance or mutual fund company.
What happens if the market is overheated and there aren't any stocks that you should be buying because buying at this time will mean you will overpay? Do you think a commissioned salesperson will tell you to hold off buying if they know that they won't make any money? Unlikely.
- Make sure you have at least some basic education on finances. You have to be a partner in your investments, and you can't do that if you have no idea how it all works.
If you follow these steps, you won't ever wonder: "Is it possible to have a retirement in today's economy?" You will be set no matter what the economy does, and won't that feel amazing!
If you are in or near the Metro-Nashville area, feel free to reach out to me directly. And for those outside Tennessee or who desire to work with someone local, visit IARFC to find a qualified RFC near you.