Life can throw a lot of curve balls, so it’s important to make sure that despite life’s twists and turns, your retirement plan remains on track. Whenever your goals, income, or priorities shift, it can be a good time to review your retirement plan. If any of these life events listed below have occurred recently – or even if they haven’t – you may want to review your retirement plan.
Combining or unwinding finances can be challenging. If your marital status has changed, consider reviewing the beneficiary designations on your accounts so they reflect your current status.
You already know children will add some expenses to your monthly budget, but just how much might surprise you. According to the U.S. Department of Agriculture, the cost of raising a child to adulthood in 2015 was over $233,000.1 Considering annual inflation, that cost is likely to grow each year. In addition to considering the financial implications to your retirement plan, evaluate your life insurance coverage to help ensure your children are protected.
If you recently received a promotion or found a new job, you may have an opportunity to increase the amount you’re contributing to your retirement. Increasing your contributions by just 1% or 2% can have a significant impact on your savings over time. Of course, sometimes life can throw you a curveball, and you may lose your job, or leave the workforce. In this case, you may want to review your budget and reevaluate your saving and spending priorities.
Do you have big plans for your retirement, like traveling the world? Do you have financial flexibility to make that happen when you leave the workforce? Review your retirement plan to see how your new goal will impact your projected finances, as well as the other goals you might have for your golden years.
When you move to a new home it’s a fresh start. Change of address for your accounts, can be a good time to update your budget if there’s a change to your mortgage or rent payments. If you’re unsure of your next steps, consider meeting with a financial professional who can help you build a retirement plan that fits your goals.
1 Source: U.S. Department of Agriculture https://www.usda.gov/media/blog/2017/01/13/cost-raising-childThe Cost of Raising a Child, 2020
The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.