Avoid these mistakes and you are way ahead of the crowd:
Mistake #1: Not have a clear understanding of what your lifestyle is costing you. Budget…yes, the dreaded “B” word. You have to know what your current lifestyle is costing. This is important to ensure your retirement planning reflects the right amount.
- I have heard clients say, “But I make so much money, I don’t need to do a budget.” That is all fine and good, but if you are spending it all, it doesn’t matter. We have seen many couples in our office that were making several hundred thousand and even in several cases, over a million a year in income that had not saved $100,000 towards retirement. If this sounds like you, grab your financial information and RUN to our office. You need help, FAST! You may be making great money now, but be honest, you will probably want to stop working at some point…maybe sooner than you think. Your good earning years are numbered. You need to get control of your budget and invest enough for retirement NOW! You need a financial advisor to help you reign in your spending and incorporate your goals into your budget. This takes a little time on your part, but necessary if you want to stop working before age 90.
- Your spouse is your critical retirement success ingredient. Without him or her, your plan is destined for failure and
Mistake #2: Not including and working with your spouse in the retirement planning discussions.
- To supercharge your retirement plans, a spouse that agrees and is working with you hand in hand is critical not just to your retirement success but also to your marital harmony. Money issues are the number one reason for divorce in America.
- We will often see one spouse show up for an initial meeting. Maybe the person showing up has realized they have problems, but the other spouse either doesn’t care, or is oblivious. In these cases, it is next to impossible to make progress. Even if one spouse is following a plan, it doesn’t matter if the other spouse is blowing the plan up at the same time. Working together ensures both spouses feel they are being heard, and that their goals and dreams are part of the plan. One spouse may be completely stressed out about money issues, while the other doesn’t have a care in the world about it. If this sounds like you, its time you both visited a financial advisor that works with couples in your situation.
To learn more about Timothy Brown, view his Paladin Registry profile.