It's that time of year when many of us vow to eat better, exercise more, travel and better manage our money. At One Nevada, we're not great diet gurus, fitness coaches or trip planners, but we can help you out with the money side of things with an annual financial plan check-up.
Whether you're a few decades or a few years from retirement, it's important to ask one fundamental question: will your money outlive you or will you outlive your money? You could be doing a great job of putting money away for your future, but if your plan doesn't include the rising cost of living, health care and taxes, then you may inadvertently have a plan to run out of money.
Consider this. If you plan on retiring at age 62, you may have a life expectancy of another 30 years. With inflation, the cost of living could increase two and a half times over those 30 years. Essentially, for every $100 you spend on groceries today, you could be spending $250 for the same groceries 30 years from now. This is where that planning stuff becomes pretty important.
Most people spend more time planning their next vacation than they do planning their long-term financial plan. Hey, we get it. For some of us, retirement may seem like a long way off, but the earlier you start, the more time you have to prepare.
Here are a few things to do and consider about your financial plan as we kick-off 2018.
• Set measurable goals Define your long-term financial goals and make them measurable so you can evaluate how you're doing at least once annually.
• Evaluate your risk tolerance Are you willing to risk more of your assets to earn more? Review your risk tolerance annually to determine if you need to make adjustments to stay on track.
• Re-evaluate your investment and asset allocation strategies Identify what types of assets you have and how you have them allocated. Over time, you may need to make adjustments based on market conditions or other factors.
• Prepare for the unexpected Take care to protect what you have. This most often involves evaluating your insurance needs to make sure you're prepared for unforeseen emergencies or expenses.
• Tax strategies Evaluate how tax laws have changed and understand how to help reduce taxes now and in retirement.
Seem daunting? Well, here's the great news! Your One Nevada membership gives you access to a complimentary, no obligation financial check-up with one of our CFS* Financial Advisors at One Nevada Investment Services offered through CUSO Financial Services, L.P. Our CFS* Financial Advisors can help you start a new financial plan or evaluate your existing one.
Regardless of what stage of life you're at, it's never too early or too late to make changes that can help improve your financial plan.