How Does Hobart Wealth Create the Optimal Financial Plan? |
Posted: April 20, 2022 |
Have you saved enough for retirement? Are you struggling financially and living a paycheck-to-paycheck life? You're not alone. In the U.S. Census Bureau's Survey of Income and Program Participation of 2017, it was revealed that almost half of adults between the ages of 55 and 66 do not have any retirement savings. Only 22% of the women and 30% of the men in that age range have saved more than $100,000. It's never too late to take hold of your finances and plan for the future. What steps go into building the optimal financial plan for your needs? Identify Your GoalsThe first step to creating a financial plan is to identify your retirement goals. Do you plan to stay where you are or move to another state or country? That can impact the amount you need for retirement. It's more expensive to live in the U.S. than it is to live in some overseas countries. Statista estimates that the average rent in the U.S. (2021) is $1,588 a month. Utility bills are around $110 a month, and groceries cost about $610 a month. That's about $2,300 a month. It's not counting transportation/vehicle costs, heating/cooling expenses, property taxes, and health care costs. WorldData's calculations put the monthly cost of living in the U.S. at $5,378, which is likely closer when you add in healthcare costs, heating/cooling, taxes, etc. Compare that to some of the countries that retirees consider when moving outside of the U.S.
If you wanted to retire in your family's home country of Ireland, you may need to save more than initially considered. This is an important consideration when planning for the future. You also have to consider your health. You can be healthy now, but if there is a strong family history of heart disease, you'd need to consider the importance of having the best possible health insurance plan. It will cost more. Analyze Your Current Expenses, Income, and AssetsOnce you have a general idea of what you want during your retirement, it's time to address how you'll get there. To do that, you need to carefully analyze your current expenses, income, and assets. Do you own a home? If so, are you still paying a mortgage or is it paid off? Did you inherit a family home? Is there a chance you will? You still have a mortgage. How much do you still owe? Will it be paid off before you retire, or are you going to still be making that payment? How much are your insurance and maintenance costs? Sometimes, people want to move to a smaller or one-level home after retirement. Would you benefit by downsizing or moving to a community where master insurance, landscaping, and maintenance are included in the HOA fee? How much is your current income? Experts recommend making sure your retirement income is 80% of your current income. If you currently make $10,000 a month, you want to have set aside enough in retirement funds to cover $8,000 a month. Finally, look at how much you spend each month. What do you spend on groceries and household necessities? How about entertainment and technology, such as internet service, cellphones, and streaming channels? Total the amount you spend on credit card debt, student loans, car loans, and personal loans. Factor in your heating and cooling costs, property/school taxes, transportation costs, maintenance expenses, and utilities like water and electricity. Those bills will not disappear when you retire. Some may increase when you're home all day, while others may decrease. Build a Financial PlanYou know how much you earn. You've calculated your expenses. Now is the time to look at ways to save money. You want to be able to invest some of your earnings into your retirement savings. You can't set aside so much that you can't afford to pay your bills. You have to build a financial plan that considers your expenses vs. your income. While building your savings plan, you want to make as much of it tax-free as possible. Products that offer tax-deferred options help ease your tax burden, too. As you start saving, the interest you earn may be taxable if you choose the wrong financial products. You want to know how much you can invest in IRAs before there are tax penalties. This takes a lot of research on your part if you don't work with an expert in financial planning. Your financial plan also needs to consider a few other aspects. It must factor in inflation. It has to consider lifestyle changes, such as marriage or children. Your plan also has to look at the what-ifs, such as what if you live decades longer than your parents or grandparents did? They may have lived until their 70s, but it's not guaranteed to be the same for you. What if you live until 90? Have you saved enough? Hobart Wealth focuses on your retirement plan using these five areas: Income, Investments, Taxes, Healthcare, and Legacy. It covers how much you'll need for income, what the best investments are, how to plan ahead for the taxes you might owe on gains down the road, healthcare costs, and the people you'd want to leave your financial gains to if you died before the money ran out. Put Your Plan in ActionYou've come up with your financial plan. It's time to implement it. You'll be setting up new accounts, moving funds around, and watching carefully to make sure that the money is deposited correctly. After the accounts are formed and money is moved around, you need to make sure you can access the accounts and have the log-in information stored in a safe location, such as a locked safe. If you can't get into the account, it will be harder to complete the final step in financial planning. Continue to Review and Update When NeededOnce your financial plan is in action, you can't just ignore it until you retire. You need to review it often and update it when needed. Make sure that your investments are growing as well as you hoped. You may switch jobs and have a different income. Address that during a review. If your retirement goals change, a review is necessary to ensure you stay on track. You might have an emergency hit that changes your expenditures for a few months, adjust your plans to cover that. Adjusting your plan is a smart way to ensure your retirement plans don't derail. Trust in an Expert's Advice Use expert advice and guidance to ensure you build a financial plan that targets your needs and doesn't overlook anything. It's easy to get caught up and overlook minute details that can crush the plan you're working hard to implement. Putting your finances in another's hands can be stressful. Hobart Wealth understands that and we promise. Give us a year to help you establish a financial plan that delivers exactly what you want. Our financial experts go over everything to maximize investments. If you're not 100% satisfied after that year, we'll refund all of the advisory fees you may have paid. Schedule a consultation. Let us know what you want to achieve and we'll put a plan to work. Talk to the experts at Hobart Wealth to learn more about building a financial plan that delivers the results you expect and learn more about our 100% guarantee.
|
|||||||||||||||||||||||||||||||||||||||||||
|