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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