We wish you a happy new year! Despite a crazy year or perhaps because of it, many Americans will be making financial resolutions for 2021.If you’d like to put some of this year’s focus on financial goals but haven’t identified yours, here are a few to consider:
Pad your retirement savings. You probably spent less on travel, restaurants, movies, gas, or sporting events in 2020. Why not maintain some of those cuts after things normalize and add the savings to your retirement account?
Increase your emergency fund. Almost half of Americans don’t have a rainy day fund. If you don’t have an emergency fund equal to six months of income, start one. If you do, why not add enough to cover an additional month or two of expenses?
Reduce debt, safeguard credit. Automate account payments to avoid missing any. Plan to eliminate debts before retiring. Thwart identity thieves with credit monitoring, which notifies you when key information on your file changes.
Create a long-range plan. If you’re married, project future expenses if you both or one of you live to 95. Then go to www.ssa.gov/myaccount to estimate Social Security benefits you’d receive when claiming at different ages. Determine how much more you’ll need to maintain a comfortable lifestyle later in life.
Review your insurance and estate plan. Make sure your insurance coverage is adequate and beneficiaries are up to date. If you haven’t reviewed your estate plan recently, you’ve moved, or your assets or family has changed, schedule a meeting with your estate planning attorney.
Invest in yourself. Health care is expensive. A recent Fidelity study indicates the average 65-year-old couple retiring in 2020 can expect to pay $295,000 for out-of-pocket health care and medical expenses (not including potential long-term care). Taking steps to stay fit now may help you enjoy retirement and save money.
Your odds of successfully implementing goals increase when you have an objective, specific and measurable goal. If you need help identifying what financial resolutions will make the most impact to your goals, let’s set up a time to discuss your financial resolutions and how we can work together to make 2021 a happy and prosperous new year!
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