The changes sweeping across corporate America over the past forty years have put average workers and society at risk. Many factors have adversely impacted our economy. One significant factor is that corporations have divested themselves of the responsibility of providing pensions for their employees. Instead, they put the responsibility squarely on the shoulders of the workers themselves, asking them to decide how much they should contribute to their 401(k) s to receive matching funds.
As a result of these changes, many individuals in the US don’t have the financial resources to manage their current expenses, let alone save enough for retirement. This has been a source of anxiety for those who know that they need to plan for retirement and worry if they can count on Social Security and part-time work alone to manage their future living expenses.
If you find yourself a little uneasy about how you’re going to manage during your later years, here are three ideas to help you craft a good retirement plan.
- Take out final expense insurance
Final expense insurance, also known as known as end-of-life insurance, funeral insurance, and burial insurance, is a specialized type of insurance that will give your family a lump sum of money after you pass away for covering costs when you die. It will take care of any of your final bills, including credit card debts, legal expenditures, medical costs, and funeral expenses. In order to set up a policy, make an appointment to see an insurance agent and review the variety of final expense insurance plans available.
- Create a financial makeover plan
Regardless of how many years you have before you retire, you always have the opportunity to make changes to how much money you’re bringing in and how much you’re spending. Pay attention to what’s working for you. Identify what’s not working. And figure out what needs to be changed. If necessary, speak to a financial advisor for ideas on what lifestyle changes you should make. A consultant will also help you create a budget and develop an investment strategy.
Change is possible if you’re willing to make a change.
If you’re underearning, research what type of education you can acquire to raise your skill levels. If you’re overspending, then try to figure out ways to be more frugal. And if you’re not investing, then decide to learn how to invest. For instance, you might still be able to get in on your Employee Stock Purchase Plans (ESPP), which is based on payroll deductions. Your employer will convert your money into company stocks every six months at a fifteen percent discount.
- Live below your means.
We live in a consumer society where we’re surrounded by advertising bombarding us with temptations. On top of that we often compete with family and friends on our selection of clothes, gadgets, and vehicles. We may also be tempted to spend money on a wide range of entertainment services. Advertisers have trained us to want more than we need and often trick us into assuming assume large debts by offering easy installment payments. In truth, you can live two or more times below your means.
In closing, if you feel a little overwhelmed by the task of designing your own retirement plan, you’re not alone. Many older Americans find it difficult to understand how their retirement accounts work and how to start an investment strategy. Fortunately, you don’t have to do everything alone. Many financial institutions and numerous independent financial counsellors can help you with creating a realistic retirement plan. There are probably numerous saving and investment instruments that could help you.