October 10, 2024 Breaking News, Latest News, and Videos

Tips to Face Your Financial Fears

Take action to save for retirement

 

Retirement is supposed to be a reward for decades of hard work, but if you haven’t planned well, the milestone may be a dark cloud on your horizon. In fact, new data shows that nearly 50 percent of Americans are most afraid of outliving their income or the inability to maintain their current lifestyle, and nearly 20 percent are worried about having enough money to cover health care expenses.

The research, released by the Indexed Annuity Leadership Council (IALC), also found that despite these very real fears, Americans are failing to take action to address them. For example, a quarter of Baby Boomers, the age group closest to retirement, have less than $5,000 saved for retirement and nearly one in five Americans have no idea how much they’ve saved.

The findings indicate that Americans are afraid of the unknown when it comes to managing their money and retirement. While you can budget for leisure and travel, health care expenses and life expectancy are unpredictable.

“Americans are living longer than ever, so it’s no surprise that the No. 1 retirement fear is that they’ll run out of money in their final years,” said Jim Poolman, executive director of the IALC. “Thankfully, there are strategies and products out there that can help you create sufficient retirement income to last throughout your lifetime, which can help with this crippling fear.”

To take control of the uncertainty and create peace of mind when it comes to retirement, here are some simple steps you can follow:

Make a budget.

Those who plan for retirement are estimated to save three times more than those who don’t. Take into account that your expenses may increase during retirement, specifically for items such as health care and travel. Also, be sure to revisit your budget periodically to make adjustments for new circumstances that affect how much you need to support the retirement lifestyle you desire.

Balance is key.

Investing in a 401(k) is a great way to start a retirement portfolio, but putting all your eggs in one basket is a common mistake. One method to provide balance to your retirement portfolio is to add some more conservative, low-risk products, such as Fixed Indexed Annuities (FIAs), which protect your principal regardless of market ups and downs. According to the survey, FIAs are an attractive choice for consumers, with 45 percent of Americans surveyed interested in this type of retirement product.

Plan to adjust.

A savings strategy that makes sense today might not fit your needs in five, 10 or 20 years. Factors like market volatility, changes in your career or personal life, can impact the amount you’re able to save and how much you anticipate needing when you reach retirement age.

Monitor the balance.

While it’s not as critical to track the ups and downs of your portfolio in your younger years, the closer you are to retirement, the more important it becomes to be aware of your account values. Your level of risk should reflect your age and your retirement goals. Generally, the younger you are, the greater risk you may be able to tolerate because market cycles generally rebound losses over time. When the window of time before retirement is tighter, you may not be able to recover from a dip as easily.

Small changes count.

Even seemingly little adjustments can have a noticeable impact on your finances over time. For example, packing your own lunch and giving up an evening out with friends once weekly or monthly will allow you to direct that money to a retirement account instead. Also, be sure to pay your credit card bills on time to avoid fees that not only affect your credit rating but deplete funds that could be directed to retirement savings.

Make it automatic.

Set up scheduled transfers so you don’t forget or aren’t tempted to spend the money you planned to save. Treat your retirement account as a debt you owe and be sure to pay yourself every month. If necessary, meet with a financial advisor who can help you determine a strategy to pay down debt without sacrificing your retirement planning.

 

Find more tips and tools to guide your retirement planning at FIAinsights.org.

WST-FINANCE12017

in News
Related Posts

Chef Jason Neroni Bids Farewell to L.A. with Exclusive “Biography” Dinner Series

October 10, 2024

October 10, 2024

Renowned Chef to Host Intimate Dinners at Secret Locations Chef Jason Neroni has announced an intimate and reflective series of...

(Video) Notre Dame Academy to Host Open House on Oct. 27

October 10, 2024

October 10, 2024

See How the All-Girls Catholic School is Empowering Young Women For The Future. For more info, go to academy.ndasla.org. @smmirrornews...

Socalo’s Pork Belly Guacamole Supports Childhood Cancer Fight with Every Bite

October 9, 2024

October 9, 2024

A Portion of Proceeds Will Benefit Alex’s Lemonade Stand Foundation Socalo restaurant is extending its support for Alex’s Lemonade Stand...

Santa Monica to Renegotiate Agreement to Host Olympic Beach Volleyball

October 9, 2024

October 9, 2024

After Reviewing the Agreement and a Fiscal Impact Study, Council Members Remained Confused Over the Potential Economic Benefits and How...

Castanea Sicilian Cafe: Bringing the Sweetness of Sicily to Venice Beach

October 9, 2024

October 9, 2024

THE CAFE Welcome to Castanea Sicilian Cafe: “Il dolce far niente – the sweetness of doing nothing” arrived at Venice...

Venice Skatepark to Celebrate 15th Anniversary with Community Event

October 9, 2024

October 9, 2024

The Skatepark Stands as a Testament to Venice’s Rich Skateboarding Heritage Venice Skatepark, a landmark on the Venice Beach boardwalk...

(Video) Westside Neighborhood School: Where Kids Are Encouraged to Explore

October 8, 2024

October 8, 2024

For more info, go to wns-la.org @smmirrornews For more info, go to wns-la.org #school #education #teacher #teach #children #losangeles #california...

Eclipse School Helps Children Prepare for Kindergarten

October 8, 2024

October 8, 2024

By Susan Payne Transitional Kindergarten works. For Juliya Spiegel, mother to a now five-year-old kindergartener, a decision was on the...

Santa Monica Woman Sentenced to 8 Years for Attempted Meth Possession for Distribution

October 8, 2024

October 8, 2024

Drug Dealing Plot Stretched from Santa Monica to Wisconsin A Santa Monica woman was sentenced to eight years in federal...

Knife Attack Suspect Robbed a Santa Monica Target Store Prior to The Attack, Police Say

October 8, 2024

October 8, 2024

Authorities Have Identified the Suspect in a Fatal Attack on a Santa Monica Police Officer That Occurred Outside the Department’s...

Pilot Project Captures 250,000 Pounds of Trash From Ballona Creek

October 8, 2024

October 8, 2024

The Trash Interceptor 007 Was Developed by the Ocean Cleanup, a Nonprofit Organization Based in the Netherlands, and Is Part...

Film Review: Lee

October 8, 2024

October 8, 2024

At the Movies With…Lady Beverly CohnEditor-at-Large There is no doubt in my mind that Kate Winslet will be nominated in...

(Video) Meat & Seafood Market Opens New West L.A. Location

October 8, 2024

October 8, 2024

For More Info, Go to wildforkfoods.com @smmirrornews For More Info, Go to wildforkfoods.com #california #losangeles #fyp #meat #seafood #fish #venice...

Pacific Park’s Famous Pacific Wheel Just Got a Fun (and Educational) New Upgrade

October 7, 2024

October 7, 2024

Riding the Ferris wheel at Pacific Park just got even more enjoyable. Now, along with the incredible views of the...

SMC to Present “Six Characters in Search of a Playwright”

October 7, 2024

October 7, 2024

The Production Is an Adaptation of Luigi Pirandello’s Classic Play Santa Monica College (SMC) will stage live performances of “Six...