3 Concepts to Think About in the Retire Later Zone (Retire Later)

Later with check mark

If you’re in your 20’s, 30’s or 40’s, then you’re in the “Retire Later” zone. And, if you’re in the “Retire Later” zone, then here are 3 concepts to think about regarding your finances.

First: If you have minor children, should you be saving for college or for retirement or both!

Often, parents put their children first. But be aware, your children may have access to student loans and other sources of college financial aid to cover college expenses. On the other hand, if you haven’t saved for retirement, where are you going to turn? This doesn't mean you have to forget about college savings entirely – just make sure you put at least something aside for your retirement and the sooner the better. Usually, such retirement savings at this stage comes in the form of a contribution into an employer sponsored plans (ie. 401k, 403b, 457).

Second: Is your Savings Plan is on track?

In order to retire, you need to have a nest egg saved up. In order for that nest egg to grow, it needs to be properly invested. Is your savings account properly diversified and is your savings account adequately appreciating in value? You must continue to monitor your these accounts so that it reaches the right amount at the time you need it most. Typically, young investors simply invest in an all stock mutual fund portfolio. This strategy can be extremely risky, especially if in the stock market tumbles. A properly diversified approach usually makes more sense.

Third: Have protection for your family.

If you haven't addressed issues like wills, trusts, and insurance, don't delay any further. These are all items that will protect your family in the event of a catastrophe. Young families don’t want to think about such a morbid scenario. That is completely understandable. However, a properly structured estate plan, including life insurance, is necessary to protect your family. Don’t procrastinate or assume it can’t happen to you.

Think and Act on these 3 Financial Planning Concepts and you’ll be on your way to Financial Security!

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