Retirement

Are You Getting Ready for the Next Recession?

Are You Getting Ready for the Next Recession?

Financial Tip of the Day:

When the economy is doing “good” that's when we feel least like saving. When the money is flowing in, we start to feel like it's never going to end. Maybe we’re raking in the overtime, or our businesses are doing extremely well. And that’s when it feels like the money spigot will continue forever. But, the truth is, when your money is “good” is the time when you MOST need to save.

Have you ever looked at celebrities or athletes who were making millions at one point in their lives, and then a few years later you read or hear about them and they’re broke? This is because they didn’t save for the rainy days.

No matter who we are, our income IS going to drop at some point in our lives. We may have to take a pay cut, lose our jobs, retire, or our businesses may not make as much profit.

THIS is when savings come to the rescue as a buffer. Savings can help you maintain a (relatively uninterrupted) pleasurable and secure quality of life at these times.

If you don't have any savings in place, NOW is the time to make it happen. Get your savings plan together and start saving REGULARLY.

History has shown that recessions occur naturally and consistently in our economy. Remember the last one? And as Black women, WE tend to get hit quickest and hardest when these happen.

Get ready for the next one.

A Few Minutes Now Can Equal Bliss Later...

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Financial Tip of the Day

Many people don’t reach their goals simply because they don’t realize how much time and/or money their goal truly requires. And they’ve never taken the time to do the research to see what’s involved. The same is true for retirement. Many now-retired people never stopped to figure out how much they would need to save in ADVANCE to enjoy the type of retirement they desired. So they got there and had a rude awakening…often having to drastically scale back their lifestyle.

After working so hard for SO many years shouldn’t we be able to live the lives we TRULY want at that point? Take the time to use your plan’s retirement calculator to figure out how much you’ll need to save NOW to have the life you want then. It may be scary to see how much you’ll need (my figure was larger than expected). But isn’t it better to find out NOW and make the necessary changes rather than live unhappily during your non-working years? Take out a few minutes to get clarity on this (if you haven’t yet). Here’s a calculator you can use, if you’d like: Retirement Calculator

P.S. – Are you looking for a speaker to show your organization/group learn how to find money to save for retirement? I am available to speak to your group! Visit my Speaker Page at https://yolandaransom.com/yolandaransomspeaking/ or email me at yrconsulting@optimum.net to arrange a time to discuss your needs/goals.

 

Hey Self-Employed, Sock Away $ For Your Retirement Dreams Too!

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Financial Tip of the Day

Business Owners/Self-Employed, take advantage of Solo 401Ks. If you are self-employed or are the sole owner of your business, the Solo 401K may be an excellent retirement savings option for you. If you happen to be a sole proprietor, independent contractor, or consultant, this option is available and you can sock away plenty of money for retirement too!

Since Solo 401ks allow you to contribute as both employee AND employer, you can potentially save more than DOUBLE the amounts allowed by traditional employer sponsored 401k’s. Whoopee! For more info on what they are and how they work, read on: What Is a Solo 401(k)?

P.S. – Write down your daily business vision, financial goals, and personal dreams in your very own “My Abundant Money Book.” Journal your way to success! Get it here:  Shop.

Special Report on Retirement: Catch It!

Financial Tip of the Day

Nightly Business Report did a special show on retirement on Thanksgiving. Did you catch it? It addressed why we’re not saving and/or not saving enough. It’s worth a watch. Catch it here : Nightly Business Report

Saving for retirement may feel boring, overwhelming and daunting. In all honesty, I myself am not where I want to be with my retirement savings goals. It turns out I’ll need a LOT more than I thought. But I’m not giving up. And neither should you. Catch the show for tips on what to do here: Nightly Business Report

More on 401Ks & Our Future:

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Financial Tip of the Day

So last week’s episode of Adam Ruins Everything discussed 401K’s – how they came to be, the pros and cons of them and why they’re so challenging to use.  Additionally, while 401Ks are ideally not the best retirement savings vehicles, if we do have plans available through our employers it’s wise to take advantage of them - especially if they match. Plus, we need to save much more than originally predicted in our 401ks.

Sadly, the episode stated once again how about 50% of Americans ages 32-61 have NO retirement savings - and that these individuals will experience a significant drop in their standard of living if they retire with no savings. You can catch the episode on TruTV or here Adam Ruins the Future

I know that so many people need support with saving money for their dreams – like retirement –  which inspired me to create coaching to help you specifically save for your dreams. If you don’t want to let another year pass without saving enough and  you want to head into 2018 with a saving plan designed just for you, schedule a FREE Money Mastery Discovery Session with me. This is for you if you’re ready to take action in saving for your dreams. Contact me here .

Take Care of Those Old 401Ks

Financial Tip of the Day:

If you’re like me, you’ve had more than one employer sponsored retirement account. You have moved on from one job to another (or are in between jobs) and left your retirement funds in your old employer’s plan. Often, individuals leave their funds in the old account out of convenience or laziness, with little afterthought. If you do opt to leave it there, be actively aware of what’s happening with your account.

Rather than leaving it sitting there with the past employer, you can find out if/how to rollover those funds into your new employer’s plan.  If you don’t have a new employer, you can usually rollover your old employer sponsored account into an individual account. Most 401k administrators will even do the rollover for you, if you move the funds to their company. Each option has different tax impacts, so you’ll need to see which one is best for you.

As tempting as it may be to withdraw the money to spend it now, I warn against it. It takes a lot of time to build up retirement savings, but just minutes to blow all of it. Plus, any money withdrawn prematurely results in paying early withdrawal penalties and taxes on them. DON’T withdraw the funds, just ROLL THEM OVER. Before you know it, you’ll be retiring - and you’ll really need those funds then.

Free Money You Can't Afford to Leave on the Table…

When reviewing the financial pictures of clients who indicate that they don’t have retirement savings, I often ask, “Do you contribute to your company’s retirement plan?” And “Do they match?’” More times than I’d like to admit, I’ve been told “No, I don’t,” followed by “I don’t know (if my company matches).” Needless to say, this isn’t good.

Forbes states that Americans say not saving for retirement early and often enough is their BIGGEST regret!

No matter what our age, it’s vital to build up retirement savings once we’re eligible! I always remark that I don’t expect social security to be around by the time I retire. Whether that’s the case or not, my point is that I’ve decided that saving up enough to live well during retirement is UP TO ME. And this is what I try to communicate to clients. The way to financial security is to put in place a strategy where we take individual responsibility for our financial futures - and not depend on others to do this for us. Whether it’s Uncle Sam, a relative, or hoping to win the lotto…

To that end, I always urge clients to find out their company’s retirement plan details. If they’re a New Hire, I ask them to find out and let me know what the deadline is for enrollment. If it’s no longer possible to enroll in the plan until the next open enrollment period, I offer to review plan details and explain the tax and savings benefits of utilizing a retirement plan.

Since many companies match a percent of the contribution amount made by employees, employees who fail to enroll in the plan literally forfeit hundreds or thousands of dollars! I tell clients, “As hard as you work, don’t you deserve to take advantage of this extra money?” They always agree. The problem is that often they don’t understand how the retirement plan works and its benefits. Confusion and/or lack of knowledge are almost always the reasons for this inaction.

If you don’t understand your company’s retirement plan policy, reach out to your company’s HR department, the plan administrator ( the company that handles the retirement funds), or a financial professional for help.

If you’re still not convinced by my argument, take a few moments to read this Huffington Post piece : What Retirement Without Savings Looks Like. The best time to prepare is now when you have money consistently coming in.

About Yolanda

Yolanda Ransom is the CEO of Improve Your Finances, LLC and is a Certified Financial Coach & Consultant.  She empowers clients to confidently master new money management skills, resulting in improved finances and financial stability. She’s assisted thousands of clients with understanding and selecting plan and benefit enrollment packages. Learn more about Yolanda here.