Planning for the future is important for people of all ages. It’s especially crucial for middle-aged and older adults who have families to consider. Unfortunately, about one-third of those over the age of 50 don’t yet have any kind of long-range financial plan in place. There are many reasons why this might be the case. For high earners, there might never have been a need orurgency about financial planning. For others, who just barely get by on their current income, it’s hard to plan past the next month or year.
What’s the solution? In most cases, adults who are within 10, 15 or 20 years of retirement can at least commit to writing a long-term financial plan. This strategy can be helpful regardless of your current financial state. It’s a good idea to focus on four key areas when planning for your, and your family’s, long-term financial health.
Get Professional Help
It doesn’t cost much to book a short consultation with a financial planner. Many will offer you a 30-minute session at no charge. If you take advantage of this strategy for obtaining solid advice, be sure to have your key questions written down ahead of time so you won’t waste valuable clock time during the consult. Professional planners can give you actionable suggestions on a wide range of money-related topics like life insurance, retirement planning, what kind of will you should have and much more.
Analyze Your Insurance Situation
Gather up all your insurance policies and do a personal review of what you have, don’t have and might need to add to the mix. After doing your own analysis, check in with a qualified agent and ask about getting a free “insurance review.” Experienced insurance professionals, in a matter of a few minutes, can help you see whether you need more or less insurance coverage for your home, life, auto or health. They can even explain concepts you might not be familiar with, like how a modified endowment contract works or how whole life might fit in with your financial goals. It’s a good idea to do a review like this at least once per year.
Know Your Social Security Status
Contact the Social Security Administration and ask them to send you a personalized statement of benefits. You don’t need to be over 65 to get this information. Simply call your local SSA office and tell them you need your earnings history and “expected benefit amount” data for your records. They’ll tell you everything you need to know and will make sure that you receive a written statement in the mail.
Open a Savings Account
It seems almost too obvious, but having savings account can do wonders for your financial health. Your savings account should be separate from any designated retirement accounts like IRAs and 401k’s. Think of your savings as a very small percentage of whatever you take in. When you receive a paycheck, put some fixed percent into savings. Many people use this kind of savings account for emergencies, which helps protect your long-term financial assets.
