You may have one or more qualified retirement plans, such as a 401(k) through an employer or an individual retirement account (IRA), but do you have a Plan B? While it’s not a savings or investment vehicle, a Plan B can help you make more confident decisions about your finances when life takes an unexpected turn.
Why consider a Plan B?
Prudent planning and a disciplined approach to saving are critical for pursuing your retirement goals, including the ability to retire when you choose. However, unanticipated circumstances such as a serious illness or job loss can throw a wrench into even the best laid plans. That’s something many American workers have experienced firsthand, according to the 2017 Retirement Confidence Survey. Among 48% of workers who retired earlier than planned, 41% cited hardships, including health problems or a disability; 26% experienced changes at their company, such as downsizing or closure; and 14% had to retire early to care for a spouse or family member.
Unanticipated early retirement can be highly stressful. In many cases, individuals simply aren’t psychologically prepared to leave the workplace and transition to a different lifestyle. Others are not financially prepared. Having a contingency plan in place is not only beneficial for reducing anxiety when unexpected events occur, but for helping to prevent your long-term plans from being derailed. To learn more about retirement investment strategies, check out this retirement millionaire review by Dr. David Eifrig.
The first step is recognizing that retirement planning is not a “once and done” exercise. Life and financial market events can occur at any time without notice. That’s why experienced financial planners encourage clients to regularly review their financial progress and evaluate how different financial decisions and circumstances may help or hinder progress toward their goals. By considering how outside influences and events, or changes in your plans, priorities or spending habits may affect your retirement income over time, you can make informed choices if or when changes to your strategy are warranted. Retirement confidence begins with having a comprehensive plan in place that seeks to manage risk and help you remain on track toward your goals.
Kathryn Palao, Certified Financial Planner®, Vice President & Investment Advisor Representative at Hudson Financial Services, Inc.
Tel: (914) 762-4760.
Investment advisor representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity. Hudson Financial Services, Inc. 1249 Pleasantville Road, Briarcliff Manor, NY 10510.