If you’re planning to make New Year’s resolutions for 2019, there’s a good chance at least one of them will be related to your finances.
Saving more for retirement is a common New Year’s resolution, but so many people lapse within months or even weeks. Much of the failure rate for New Year’s resolutions can be traced back to setting unrealistic goals and expectations; with that being said, here’s 3 resolutions you can make today that are realistic to stick to…
1. Dial Your Budget In
Creating a budget means listing your monthly expenses like energy bills, factoring in one-time expenses, such as your annual Costco membership, and comparing your total spending to your post-tax income. Once you have done this try to paint a picture as best you can of what your ideal retirement will look like — and how much it will cost you. If you’re struggling to do this, try using a financial calculator to help you gauge whether you are on the right spending and savings track.
CKS Summit Group have provided online calculators here.
2. Advance Your Savings
Think Social Security is enough? Think again. Social Security only contributes to approximately 40% of the average worker’s pre-retirement income, so you’ll need to find a way to make up the rest.
But remember, retirement plan contribution limits increased for 2019. Workers under 50 can now sock away up to $19,000 annually in a 401(k), and $6,000 in an IRA. Workers 50 and over, meanwhile, get a catch-up provision that raises these limits to $25,000 and $7,000, respectively. Find out more on the new 401(k) and IRA limit boost here.
Furthermore, make moves in your life (like adopting frugality or paying off debts) that will allow you to bump up those contributions as soon as possible. If you set a realistic goal and are proactive about reaching it, you’re more likely to succeed when it comes to retirement savings.
3. Pick the Right Planner
Investing in your future has never been more important.
If you have a glaring track record of failing at New Year’s resolutions, make 2019 the year you turn things around by investing in a financial planner.
The retirement income planning experts at CKS Summit Group are trained to help you analyze your financial reality and goals, devise a plan to manage your stocks and savings, and keep a lid on the uncertainty that can often derail even the most level-headed investor. During periods of market volatility like we’ve seen in December, the importance of a well-executed retirement plan cannot be underestimated.
Get your financial year off to a great start – schedule your complimentary strategy session with us today.