Is Retirement Planning for Older People?
Often, young adults fall into the trap of thinking financial planning isn’t for them. Planning for retirement is for older people. Right?
Honestly, financial planning for your adults is often overlooked. When, in fact, getting prepared early can drastically impact how wealthy you are in the near and distant future. So, we’ve put together a list of financial planning tips to get you started.
6 Financial Planning Tips For Young Adults
1. Create A Financial Plan & Start Retirement Planning Early
Early financial planning can be extremely beneficial for managing debt, creating budgeting habits, and setting investment goals. The earlier you start, the more advantages financial planning can offer.
2. Set Goals For Financial Planning Strategies
Financial planning puts you on the path to achieving monetary goals, including managing and eliminating debt, organizing investments with various objectives as part of a comprehensive plan, evaluating the effectiveness of saving and investment strategies, and identifying and assessing risk management needs.
3. Handling Debt Early In Life
There are many people in their twenties beginning their careers burdened by debt accrued while pursuing a degree. Well-thought-out financial planning enables young people to manage and ultimately eliminate their debt.
4. Develop A Long Term Plan by Saving for Retirement
Long-term plans tend to be more realistic and risk-averse. With time and patience, your financial goals can be comfortably achieved and often exceeded. Unfortunately, retirement savings plans are often overlooked by people early in their careers. This time is vital to building a strong portfolio later in life.
Making small deferrals into an employer’s plan or a Roth IRA can make a huge difference to your retirement savings. It’s important to understand the differences between Roth IRAs, Traditional IRAs, and 401(k) plans to determine which is best for you.
5. Utilize Insurances To Protect Retirement Income & Bolster Your Financial Plan
Disability Insurance Can Bolster Your Financial Plan
Someone in their twenties might not think disability income insurance is of great importance. However, it can be critically important at this time of life. Disability income insurance serves to protect income against loss due to an accident or injury.
At any time in life, you may have to call upon the benefits of disability insurance. If you don’t have it in place and an event occurs, leaving you unable to work, you’ll still have debts and bills to pay with nothing to fall back on.
Life Insurance Can Protect Your Retirement Income
You might not have a great need for life insurance at this point, but over time that needs will change. Think of life insurance as a tool that evolves with you through marriages, the birth of children, job changes, and other events. It would be best to find an affordable insurance product today, while you’re young, that can adapt and evolve with you over the years as your life needs change.
6. Enlist The Assistance Of An Expert
For those in their twenties, financial planning and risk management probably aren’t at the top of your to-do list. Granted, financial plans probably won’t look overly complicated at this stage in life. Nonetheless, it can only be of benefit to start early and take the first steps.
As strategies grow more complex over time, the Keystone team will be here to ensure you’re always on the right path. Growing your retirement income, making the right financial choices, and ensuring you have the most prosperous future possible.
Get in touch today to start financial and retirement planning with an expert today.
*David R. Guttery, RFC, RFS, CAM, is a financial advisor and has been in practice for 31 years. He is the president of Keystone Financial Group in Trussville, Ala. David offers products and services using the following business names: Keystone Financial Group – insurance and financial services | Ameritas Investment Company, LLC (AIC), Member FINRA / SIPC – securities and investments | Ameritas Advisory Services – investment advisory services. AIC and AAS are not affiliated with Keystone Financial Group. Information provided here is gathered from sources believed to be reliable; however, we cannot guarantee their accuracy. This information should not be interpreted as a recommendation to buy or sell any security. Past performance is not an indicator of future results.