OUR COMMUNITY

WORKING FOR TWO: PREPARING FINANCIALLY FOR LIFE AFTER CAREER

By Leida Speller CFP, ChFC

THE LAST YEAR FOR MANY OF US HAS BEEN about survival. We have literally been in throes of keeping ourselves, families, careers and/or businesses alive in the face of a global pandemic that has taken so many lives. The urgency and uncertainty that comes with crisis force us to focus our efforts and resources on dealing with the issues at-hand. Understandably, making the best of “today” becomes the highest priority. When this is the mental space we occupy, it is easy to allow the vision we have for ourselves and our future to fade. I would encourage you to be the absolute best you can be for yourself today, but do not lose sight of the person you are becoming. Prayerfully, you will live and thrive in a life that extends well beyond full time work. Maintaining your standard-of-living once you enter retirement requires most people to begin storing up the riches necessary to fund this stage of life long before the time comes.

How much wealth you need to accumulate for retirement is different for everyone, as it depends on several factors that come together that make your life and lifestyle uniquely yours. There are several industry “rules of thumb;” however, the most meaningful number is one that is derived from you gaining clarity around your goals and resources. Having said that, most of us can count on accumulating enough wealth to sustain us 20 to 30 years after full time work being the most significant financial goal we will ever undertake. According to the National Institute on Retirement Security, our country’s retirement savings crisis persists: • Nearly 45 percent of working-age households do not own any retirement account assets.

• The average working household has virtually no retirement savings, with the median retirement account balance of $2,500 for all working-age households and $14,500 for near-retirement households.

●• Two-thirds of working households fall short of conservative retirement savings targets.

Building wealth sufficient enough to maintain your desired lifestyle throughout retirement requires you to view your current career as working for two: who you are and who you are becoming. It requires the delicate balance of funding your current lifestyle and making provisions for your future. It requires having a plan and being intentional about implementing it. Here are some important points to remember: • Your biggest ally in achieving your retirement savings goal is often your employer-sponsored retirement savings plan. Participate! According to the National Institute on Retirement Security, only 51 percent of working-age households participate in workforce retirement plans. Saving and investing on a consistent basis is one of the most powerful actions you can take toward building wealth.

• Have a budget that supports you in living below your means to ensure there are funds available for saving for the long-term. Keep track of your actual spending for comparison to planned spending and adjust accordingly. This will help you stay on track and keep current spending aligned with supporting long-term goals.

Build a financial barrier that protects long-term savings activities and assets. Having an emergency reserve and insurance protections, like long-term disability coverage, give you a front-line defense that prevents long-term retirement assets from being used to cover emergencies and unexpected life events.

Saving for retirement is an important goal. I encourage you to start with a plan, as it is typically a financial goal that competes with many others in our lives. With the right focus, determination, and guidance, you can build a beautiful life for both, who you are today and who you are becoming.

Leida Speller provides holistic financial planning services that help clients understand where they are currently, clarify goals and create a road map that guides them from where they are to where they want to be. Contact her to get your financial future on track.