Since the financial crisis of 2008 things have been pretty peachy for the financial markets. It doesn’t mean though that you can sit back and rely completely on the U.S. government or even your current savings to help you get your retirement savings to where they need to be for retirement. There are bound to be times in the future that won’t be as bright as the past few years since the 2008 crisis. Our retirement portfolios need to be ready for anything that may come. The following are a few tips to help you make sure that your financial future is bright.
Be In The Know
It is very important to know where you are at. It is hard to get to where you want to be without knowing where you are currently at. What does this mean? It means you need to figure out what your net worth is (current assets minus current debts). If you can do this at least once a year then you will be able to know if you are truly making progress. In other words your net worth should be increasing year over year for the most part.
What Are Your Habits?
If you are like the majority of Americans your net worth will not nearly be what is should be, especially for retirement. You also probably don’t keep track of your spending. It truly doesn’t matter if you live paycheck to paycheck or if you make enough money to spend as much as you wish. If you start tracking how much you make, spend and where you spend then you will be able to find a way to start saving. Saving is key to a bright financial future. More on your spending
Typically once you find out what your habits are you will need to set some big goals in order to start saving for your bright financial future. You should have multiple goals. Goals that are short-term and goals that are long-term. Your short-term goals should help you to achieve your long-term goals. You must check up on your goals a few times a year or else they will get lost and forgotten. Forgetting about your financial goals will more than likely mean that you will forget to do what you need to do to create your bright financial future for retirement. More on retirement goals
Once you know where you are currently at, what your habits are and have set your goals you then can start pushing for that bright financial retirement.
For almost all of us it means we can start investing in our retirement with a 401k, IRA or both. One of the best tips of advice would be to create a very diversified portfolio. One of the best ways to do this is through a self-directed IRA. An SDIRA allows you to take control of what you invest in by choosing your own investments. You can invest in things outside the stock markets as well. Investments like real estate, gold, private placements, etc. These investments are great because they can all be done inside of an IRA or 401k. You get the tax benefits that come with a retirement accounts.
As we all know things are never as easy as set it and forget it. Times change and things happen that mean we may need to change our strategy. It is wise for us to take some time every year to go back over these steps and do our own audit of our situation. Some years it may mean working a little harder to save more. Other years it may mean we have a bit extra for a little family vacation. Whatever you do, don’t forget to start today to create your bright future for your retirement.
Author: Nick Barker