5 Financial Advisor Hacks: A Cheat Sheet for People Saving For Retirement!
By Michael J. Garry, Founder/CEO
Yardley Wealth Management
Don’t Get Distracted
The 24-hour news cycle can be a bit insane these days, especially in 2020 when the pandemic dominated the news and murder hornets were on the way. Many crazy things happen from day-to-day, but bad financial mistakes can be made when we are preoccupied. Keep your mind on the things in life you have control over and filter out the rest of the noise.
It’s hard to start saving again once you’ve stopped. You can’t make up for the contributions you didn’t make. You will also have missed the opportunity to buy funds when they are off, sometimes far off, their highs. When the pandemic is over, you’ll have missed a great option. The compounding effect over time is impressive, and missing out on that would be a real shame.
Contribute To Your Future Happiness
If your 401(k) match is being reduced or is no longer available, and you aren’t already contributing the most significant amount, you should increase your contribution to offset it. Even if there is a lot of volatility ahead, your returns will be better for it and your retirement more secure.
The best thing people can do is plan for their retirement. Most don’t. They wing it, and maybe it will work out, and perhaps it won’t. If you plan, you actually have a better idea if it’s going to work and what you need to change if it looks like it’s not going to. Don’t be passive in your retirement planning. Take charge of it.
Keep Making That Green!
To augment your retirement savings, you can continue to work part-time in retirement. This is a smart idea if you’re concerned about running out of money too soon, and it can also help with boredom. If you don’t want to work, you might look for other ways to make money in retirement, such as buying and renting out assets or investing in a local company. Bear in mind that you’ll have to pay taxes on these forms of income, and if you don’t have a regular paycheck, you’ll have to try to put money aside yourself. Consider setting aside money for taxes in a separate savings account, so you don’t waste it.