During youth, we often assume we’ll have plenty of time to pay off our debts. As part of a solid financial wellness plan, we know it’s important to become debt-free, but we put it off for another day.
At some point, the government decided that a retiree needed to only save enough to live on 80 percent of their cost of living. But as an experienced Financial Advisor can tell you, that isn’t a hard-and-fast rule.
At one time, employees worked until they reached their 60s and passed away not long after retirement. However, as life expectancies have reached the late 70s and early 80s, planning for a long retirement is an integral part of managing financial risk. Consumers must plan for longer golden years.
Speaking to a Human Resources representative or 3(21) fiduciary investment advisor can be challenging when conversations are filled with jargon you don’t understand. Fortunately, it’s easy to research these terms.
Conventional wisdom has young workers putting money aside each month for their golden years. Part of the traditional fiduciary process is paying off all debts, then transferring money into a 401(k) or other retirement savings account from each paycheck.