Life has many unexpected twists and turns, so
your retirement plan needs to be strong enough to withstand the changes. If you
do not have a flexible financial plan, you might struggle with any changes that
occur. Retirement planning is not a one and done situation; it is a constantly
evolving and changing process. Continue reading to learn more on how to create
a flexible retirement plan.
Have Your Retirement
Goals Written Down
Your goals for retirement do not have to be set
in stone. It can be easier to pursue your goal if you have a general idea, such as
retiring as young as possible. If you have a few goals that you want to focus
on, you can work on moving in the general direction of the goals. Since life,
jobs, and families change, you need to have a flexible strategy for your
retirement planning.
Save Money for
Unexpected Setbacks
Setbacks are inevitable. Whether it is job loss,
income loss, family loss, you need to have a flexible plan to be able to shift
and change. Having a decent savings outside of your retirement savings is
important so in the case of an unexpected event, you are not in financial ruin.
Routinely reviewing your financial plan and your retirement plan allows you to
adjust according to the situations you are going through at that point in
time.
Decide Whether Or Not
You Should Open a Brokerage Account
Your main retirement savings accounts are
401(k)s and IRAs, but these accounts have restrictions and penalties on
withdrawals. Having money saved separate from these retirement accounts is
imperative so you can use it anytime you need to. Utilizing a taxable brokerage
account as a part of your financial plan can be a great decision. The savings in
your taxable brokerage account can potentially sustain yourself and your family, as well as
help you retire earlier since you will not need to access your retirement
savings.
Make Sure Your Assets
Are Covered
When building a retirement plan, see how much
your assets and investments could be affected by a negative situation, such as
job loss. These awful financial situations could impact your retirement savings.
If you do not prepare for the worst-case scenario, you can be left exposed to
major financial loss.
Life is full of unexpected events, so you do not
want to be unprepared. Building a plan with flexibility allows you to prepare
for the best and worst situations. Having the flexibility and control to make
the proper changes to your retirement and financial plan can be key to having a plan that works for you. At McKinney Capital Management, we are here to help you build
retirement and financial plans that work best for you and your family. We want
to help you plan for the best and prepare for the worst. Contact us today
to set up a no obligation consultation by calling 713-888-0841 or via email at info@retirewithmcm.com
Sources:
Cryderman, Jason F. "Don't Make the Same Mistakes in 2021 - Keep Your Retirement Plan on Track." Kiplinger, Kiplinger, 11 Apr. 2021, https://www.kiplinger.com/retirement/retirement-planning/602587/dont-make-the-same-mistakes-in-2021-keep-your-retirement-plan.
Monroe, Josh. "Is Your Financial Plan Flexible Enough?" Kiplinger, April 19, 2021, www.kiplinger.com/retirement/retirement-planning/602625/is-your-financial-plan-flexible-enough