Other Retirement Facts:
2022 is almost here! With the new year comes new resolutions. Over the next two episodes, we’ll discuss 22 money resolutions for 2022. Some of these will be pretty easy while others will require you to work with an advisor. Here’s to a prosperous 2022!
Reducing debt – The holidays don’t always help with this, but as the new year comes into focus think of ways you can reduce your debt. Understand and manage it. Start with your consumer debt and work it down.
Boost your retirement savings account – We’re into December now so is it too late to do this for 2021? Well, for employer-sponsored plans it will depend on your payroll. If you’re putting into a retirement account outside of work, like a Roth IRA, you have until April to stock money away. If you can’t accomplish this for 2021, certainly think about it in 2022.
Set up an emergency fund – As 2020 and 2021 taught us, it’s always good to have some money set aside. You don’t want to dip into your retirement savings when an emergency comes up.
Don’t overreact to headlines – There’s a lot out there. Inflation has everyone scared right now. When it comes to headlines, take them with a grain of salt and don’t overreact.
Implement a budget – A lot of people don’t like this word. Whatever you call it, you need a way to track what you are spending. You have to know where your money is going.
Meet with an advisor – Especially if you’ve never met with one! If you don’t feel up to doing all 22 of these resolutions, just do this one.
Check your beneficiary designations – Check these on all of your accounts. It’s a pretty easy fix with only a few forms. This should be part of your annual checklist. Ask yourself if something has changed and whether you need to update those accounts.
Having tough conversations – This is hard for everyone, but these conversations are necessary. Have you spoken to your family about your estate? Have you discussed long-term care with your spouse?
Audit your insurance – Do your policies match your needs? You need to understand your risk and whether you feel underinsured or maybe overinsured. Analyze your risk and whether you want the liability shared with an insurance company and if so, how much?
Think about refinancing – This really comes down to your retirement goals. A lot of clients want their house paid off by the time they are retired. But depending on your situation, refinancing can mean a more reasonable debt to manage.
Get your finances organized – If you have a financial junk drawer, let’s empty it and start organizing those things. Are your accounts organized, do they need to be coordinated?
Listen to the entire episode or skip ahead using the timestamps below.
[1:16] – Reduce your debt
[2:07] – Boost retirement savings
[3:26] – Emergency fund
[5:02] – Don’t overreact to headlines
[6:57] – Implement a budget
[9:13 ]– Meet with an advisor
[11:10] – Check your beneficiary designations
[12:41 ]– Carve out time for tough conversations
[14:10] – Audit your insurance
[15:34] – Refinancing your home
[17:28] – Get organized!
A Quotable Moment:
“If it’s not set up your wishes will not be granted. That beneficiary designation form is the final word so to speak. It doesn’t matter what you’ve said in your will or your trust. ”
-Phil Putney
