401k - WKTV Journal

Dave Stanley
Integrity Financial Service, LLC

“You are likely to be retired much longer than you think. A recent study suggests that 50% of those born now will live beyond 100.” Dave Stanley

For how long do you think you will live? Do you believe you’ll live into your late 70s? Are you confident you’ll follow in the path of your parents, who were alive and well into their mid to late 80s?

The average joint life expectancy (men and women together) is approximately 88 years for more than 49% of the population. A full 20% of Americans live to age 95!

Depending on your unique perspective, that’s either good news or bad news. It is good because many people want to live for as long as possible, provided they are in decent physical and mental health. However, a long life can be bad news when it puts you at risk of outliving your money in retirement.

Something else to consider is that these numbers are averages. There are many exceptions to the rule, especially if you are the beneficiary of excellent genes, have tried to stay fit and healthy, and have managed stress properly. More people are hitting triple digits, and you could very well be one of them.

Longevity is a possibility. Therefore, creating a portfolio to help you maintain your current standard of living in 30 plus years of retirement is challenging. Having less money in retirement is a concern for retirees and pre-retirees. Nearly all seniors know someone who has beaten the odds and has lived for a longer time than they planned.

Many retirees and pre-retirees had had someone in their own families who went through hardship and deprivation because they ran out of many at a time when they needed it the most.

The logical solution to not having enough money for retirement is to start earlier and save more. That is not always easy to do, however. Many people are barely making ends meet and do not have much discretionary money to create retirement income. You may fall into that category and worry that you will not have any money to build a retirement account.

How do you find money to finance a retirement plan?

Developing a saving and income-planning mindset is valuable at any age.

Understandably, you might have a tight budget due to where you are in your career track. Or, you might have family, medical, or debt issues that make saving a tough proposition.

Fortunately, there are some ways you can free up cash or find the money you never knew you had, to fund a retirement plan. Here are three things you can do right now to free up money for retirement.

1. Debt restructuring. Take a look at all your debt, including student loans and consumer debt. Perhaps you can negotiate lower rates or pay debt off more slowly. For example, instead of paying more than the minimum due on a debt, take that money and put into something like a dividend-paying whole life insurance policy, annuity (depending on your age), or dividend-paying stocks. When you pay your debt off TOO fast, you lose the opportunity to grow that money.

2. IRA or 401(k) Use every advantage to contribute the maximum amount of money allowed. As you age, begin to move a higher percentage to assets that are not as volatile, such as annuities. Ask your financial expert and tax advisor to see if you might transfer your 401(k) funds to a self-directed IRA and purchase an income annuity. Always consider this with the big picture in mind, make sure you seek licensed and authorized professional advisors.

3. Live a simpler lifestyle. Making your car, major appliances, and other big-ticket items last longer can add up to thousands of dollars you can use to fund your post-career life. Eat out less often, never pay full retail, and look for every bargain you can find.

No matter your current financial situation, you can and should set aside money for a time when you will no longer get a paycheck. Starting early and being consistent, along with small lifestyle changes, will help you avoid common mistakes and achieve a better retirement lifestyle.

Here is a word to the wise. Before making any decisions about where and how you invest your retirement money, always consult a licensed and authorized professional.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or Register for Dave’s FREE Newsletter at 888-998-3463 or click this link: Dave Stanley Newsletter – Annuity.com Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

Do you want to relax in your retirement, then get serious about it now. (Pxhere.com)

By Dave Stanley
Integrity Financial Service, LLC

“Use these tips to reduce stress and change your focus on life.” Dave Stanley

1. Get serious about your retirement: If your employer matches contributions for your 401(k), you need to take advantage and max out your contribution. Your employer’s share is “house money,” which means using their contribution as part of your 401(k) plan as an employee benefit. Many 401(k) plans allow for conversion to a guaranteed retirement income, which can be used as a lifetime benefit. Ask your benefits manager to see if it is included in your plan. You also need to plan at what age you would like to retire. If you have had a loss in investment returns in your 401(k), ask yourself how I can gain that back? Your asset allocation in your 401(k) can be changed as you get closer to retirement age. Most plans allow you to move the money as a rollover to a self-directed IRA, which provides the option of using an annuity with an “Income Rider” attached to provide desired guarantees. If you have an IRA and are not contributing annually, start this year, contributions made before April can be deducted on the previous year’s income.

2. Even if you do not have a will, you do. You have two choices, either you decide what will happen to your estate OR your state of residence will decide for you after you pass away. If you don’t have a will, see an attorney and create one, and if you have a current will, make sure it is up to date.

3. Name an executor for your estate. Use caution in the selection and make sure you have asked the executor for permission to use them. Based on the valuation of your estate and your state of residence, the use of a trust can assist the executor in their responsibilities. Ask your attorney for ideas and help. Never buy a trust from anyone other than an attorney licensed to practice law. Often life insurance is used to provide funds for any taxes or debts that may be due at your death, have an insurance professional review the policies, and make sure the ownership and beneficiary decisions are up to date.

4. Create an emergency fund for situations that come up, such as a hole in your roof or an unplanned car repair. Only 40 percent of Americans could pay an unexpected $1,000 expense, such as a car repair or emergency room visit, from savings. That figure is consistent with the range of 37 to 41% seen in surveys from 2014 through 2018. More than a third would need to borrow the money in some way – either with a credit card, personal loan or from family or friends. Another 14% would reduce spending on other things, while 10% would either figure out “something else” or don’t know what they would do. www.bankrate.com.

5. Take a close look at your investments and review them for changes. Remember, as we get older, we have less time to make up losses in our investments and as you age, your investment horizon normally shrinks.

6. Start paying down debt. Debt can be a drag on your retirement, and once the debt is retired, stress becomes less, and your options for life increase.

7. Budgeting and following a monthly plan can help. There are numerous studies about budgeting; one thing is for sure, people who have a budget and follow it have less stress. Make a budget and stick to it.

Life should be enjoyed. Use thesesimple seven financial tips as the first step to regaining financial freedom and reducing stress.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, Telephone 616-719-1979 or Register for Dave’s FREE Newsletter at 888-998-3463 or click this link: Dave Stanley Newsletter – Annuity.com Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.