Financial Planning For Your Future Starts Now
Good day to the hard working citizens of the United States of America. As the financial crisis continues to wear on, it has become very evident that there are a lot of people out there having a hard time making sense of what is going on and how it will impact them in the future. There is no clear-cut answer, but I do know that sitting on your hands or sticking you head in the sand will not help matters. So what do we do? I attended a presentation recently on developing wealth and as I sat and listened to the speaker I was struck by one simple fact. Out of every 1000 baby boomers (45-65 years old) 5% will retire with enough money to live out their lives comfortably and 95% will not. I do not know how that makes you feel but as a baby boomer that scares me a little, not because I might be in 95%, but because we are doing nothing about it. What are we teaching Generation X’s and Y’s. Will they be I same situation we are in today? Who knows where Social Security is going to be in 40 or 50 years. What I propose is that we start today and make some changes and set a good example for future generations to follow.
These changes do not have to be huge and far reaching. Lets start by living within our means. We should not spend more than we bring home each week, otherwise we are using credit to keep us afloat, and we all know where that leads. Second, let us set some specific goals (e.g. college for the children in 5 years, retirement in November 2026) and from there, you can begin to develop a plan, with some help of course. In this day and age of multiple retirement vehicles, new tax laws every time you turn around, and college education that can cost more than a house, your finances are not just the checkbook anymore. You need to factor in your current financial position, your net worth, your accumulation goals, your tax strategies (yes the government will not do it for you), your retirement plans, risk management and estate planning. Well, if that sound a bit overwhelming, it is.
Take for example retirement. Are you involved in a defined benefit program or a defined contribution plan at work? How does that affect your taxes? Do you put money into a Roth IRA or a traditional IRA? How does that help you at retirement? Should I put money into all of these? How much money am I allowed to contribute or do I make too much money to contribute? These are all valid questions that need to be answered to have an effective plan, and this is only one portion of your financial picture. How is this area integrated into the whole picture so that all of your goals are achieved? If you do not have the answer to these questions, you are not alone. Millions of American’s are in the same situation.
So, let me ask you one last question. What happens if you get sick, your car gets sick or your house is sick? You hire a professional to fix it. I bet you have a doctor that knows everything about you, an auto mechanic that knows your car better than you and you use a qualified plumber, electrician or roofer to make home repairs. However, what happens when your finances are sick? Do you have someone that knows how to fix it? I propose you seek out professional help, i.e. a financial advisor. The cost of their service is usually very reasonable compared to the consequences of doing nothing. So lets plan a good future for us, and the generations to come.
Source:Ezinearticles.com
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