Can you believe how fast 2017 is going? It seems like just yesterday we were making resolutions and guess what? It's almost that time again! In this month’s column I want to give you first a reminder and second some thoughts going into the end of the year.
For most employers this is the time of year we give employees the opportunity to change or keep their current health insurance plans as well as adjust any contributions to their retirement plans. This review is the perfect occasion to take a holistic look at your entire portfolio. Review with your financial professional and your family these questions:
1. How much money will I need in retirement or in my next life change (starting a business, career change, etc.)?
2. Are my current investment contributions enough to meet my need in the next phase of my life?
3. Will I be able to cover medical expenses (they typically go up after retirement)?
4. Have I properly documented my estate plans?
The answers to the questions should give you your next move. If you are on task with your investment objective, there's no need to adjust. If you are not on pace to meet your investment objective now is the time to adjust. The necessary adjustments could come in a few different forms and I won't lie, they may not be the easiest thing to do. The first adjustment could be to contribute more.
Contributing more is as simple as it sounds. If you are contributing 5% of your total pay to all of your retirement accounts, increase it to whatever percentage you need to meet your goal. You may need to adjust other areas of your budget to meet this new amount but it's worth it in the long run.
Getting Your Finances Together
By Winfred Burns II