Financial Resolutions for 2021
Despite a crazy year or perhaps because of it, over half of Americans are expected to make at least one financial resolution for 2021.1 If you 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. According to FINRA, 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 live to 95 or either of you dies and the other lives to 95. Then go to 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 your lifestyle.
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. Studies indicate 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.
Work with a coach. Your odds of successfully implementing goals increase when you have an objective, knowledgeable partner. Make an appointment to discuss your financial resolutions and how we can work together to make 2021 a happy and prosperous new year!
1https://www.magnifymoney.com/blog/banking/money-resolution-survey/
2money.usnews.com/money/retirement/aging/articles/preparing-for-medical-expenses-in-retirement