Many investors, look toward retirement with rose colored glasses and not much more. They tell themselves they are doing the best they can, but is this really enough?
In The 6 Pitfalls of Retirement Investing, we count the "lack of planning" as the number two pitfall of retirement success. Why? Because of the fact that we have witnessed countless individuals who think they have a retirement plan in place, but have never actually taken the time to fully understand or properly analyze their investment strategies for themselves.
More often than not, an individual will rely on the advice of an unscrupulous financial advisor or investment broker without having a full understanding for themselves. This rather blind way of thinking often leads to financial ruin.
You Can Start Now
So, what's the answer here? Possibly you are new to the concept of financial investment strategies. Maybe you have a nest egg started, or maybe you are in your 50's and are trying to scrimp and save in order to play catch-up. Whichever end of the spectrum you are coming from, the bottom line is this: You are starting to think about your retirement. You are wondering about the potential success or failure of your planning (or lack of planning). We've got good news. That's a perfect place to start. You are already miles ahead of many, who are either fully relying on what they already have in place or are living in denial, hoping that somehow, things will magically fall into place for them.
Starting from the beginning, let's take off the rose colored glasses. Here are 4 steps to get you on the right track to sound financial planning, regardless where you are right now.
Step 1: Stop Blindly Relying on Your Broker - If you are currently using an investment broker or financial advisor, it's time to "re-interview" them. You can start by downloading our Full Disclosure and Transparency Fee Chart. Understanding how your money is being handled and exactly what fees you are paying is the first step in this journey. Why? Because by presenting this disclosure to your brokerage firm you will instantly gain insight into the integrity of the company that is handling your finances. If your broker gladly complies, you can move on from there. If not, it may be time to find a new investment broker. Being actively involved in your finances and investments, and demanding a higher level of commitment and disclosure from your broker will start you on the right path to financial and retirement success.
Step 2: Understand Where You Stand & How Reachable Your Current Goals Are - Statistics and psychological research have proven that vague goals, such as, "I want to retire comfortably when I am 65" are doomed to fail, unless more specific goals are coupled with them. Again, with investing and financial planning, half the battle is fully understanding all the variables involved in your unique financial situation. Often, individuals don't fully examine their retirement goals or assess how they are working so far simply out of fear of what they will find. Pushing past this mentality and having a solid plan for your future is well worth facing your fears. Isn't it better to find out now, while things can be corrected?
Step 3: Know What's Important - Often, we get tossed around by the news, the current Dow Jones Averages, predictions surrounding the recession, and other factors that are subject to change. Don't try to plan your financial goals or retirement success around circumstances that are subject to change. Instead, focus on savings, staying out of debt, maintain your insurance, and keep your estate planning in order. While it is true that you can't control the economy or fluctuations in the market, you can control how prepared you are to face these challenges.
Step 4: Assess and Reassess - The investment strategy you followed when you were in your 40's should not be the same one you are following in your 50's. Just as you would check the soundness of your home after a major storm and make plans for a new roof after a certain length of time, you must also keep up with the way you are seeing your investments. Make it a habit to meet with your financial advisor for periodic reviews. Age, changes in health, changes in assets, the economy or family crisis all have an impact on the way you look at your investments and your retirement plan. Review often and plan accordingly.
There is no time like the present to sit down with a qualified financial advisor and take a look an honest look at your financial future. We've said it before and we will say it again...Your future does not have to be uncertain.
Whether you are brand new to retirement planning or a seasoned investor, we'd love to hear from you. We are here to answer your questions and put you on the path to success.
More simple, step-by-step keys to financial success can be found by grabbing your free copy of 6 Pitfalls of Retirement Planning.
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