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 email@example.com
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