While no one can say where life may lead them 20 or 30 years from now, everyone can be certain they’ll need finances along the way. Whether you hope to own a business, a new house or enjoy a comfortable retirement, you’ll need resources. How do you make sure you’ll have them?
More information points to the fact that those who plan along the way are better prepared and have less anxiety about their finances.
Planning is often more manageable if you have help from a professional financial advisor. “The technical and emotional guidance that only a trusted, human advisor can offer to investors who are attempting to undertake the complex job of coordinating the accumulation, distribution and transfer of their wealth, is invaluable,” a report from Russell Investments states, according to a 2017 article in ThinkAdvisor.
In an environment where twenty-five percent of nonretired U.S. adults predict they will retire after age 671, which is the current minimum age for receiving full Social Security retirement benefits, it may be wise to beginning planning now for those later years.
According to professional advisors, the first step that individuals – whether young or approaching retirement – should take is to analyze their cash flow and determine how they can “pay themselves first.” The amount that they “pay themselves” can then go into longer-term retirement savings vehicles, such as Individual Retirement Accounts (IRAs) or Roth IRAs, or other targeted retirement planning vehicles.
What about children? Whether you have them now or plan to in the future, they’ll likely need higher education, which can be costly. Will you be ready? A financial advisor can help identify ways to plan for those costs years in advance, a little at a time, through a range of education funding options.
By helping individuals assess their specific situations, take concrete steps and set goals, financial advisors may help to take away some of the anxiety and procrastination that are often associated with planning for your financial future.
Don’t know where to start? The simplest place to start is with the question you have, about your goals, your dreams, the amount of money each might require. Just talking about them often can ease the uncertainty.
1 Most U.S. Employed Adults Plan to Work Past Retirement Age, GALLUP (May 8, 2017),
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This information is provided for educational purposes only and may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to assist in understanding the issues discussed. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Waddell & Reed does not provide tax or legal advice. Please consult with the appropriate professional regarding your personal situation prior to making any financial related decisions.