2Q2019 | Ages 30 – 49
Halftime: 4 Quarters to Save
If you’re like me, you’ve been “adulting” for about 15-20 years now. Much like a football game, some plays have been challenging, some fun, some painful, and we’ve grown from all of them.
I’m here to tell you as your “Financial Coach”, no matter what the score is, right now “It’s Halftime!” It’s time to get this game figured out. You are in the middle of your career. You have set goals for yourself. You have dreams you want to realize. There are people depending on you to be the best you can be. It’s HALFTIME. Before you know it you’ll be in the 4th quarter, and you don’t want to go into the 4th quarter down by 3 Touchdowns! Why? Because there’s not going to be enough time to catch up.
Now is the time to put your foot on the gas! Right now, it’s Halftime, you need to think about what you did in the first half, make a few adjustments, and then run onto the field for the second half and claim your VICTORY!!!
Here’s a few plays to make sure you are keeping an eye on your finances:
Log in to your company’s retirement plan website.
Sounds simple, doesn’t it? Think about how long it has been since the last time you reviewed your account. Once you log in, take a look at your account balance and the current mixture of stocks to bonds. Use the online tools to get a quick assessment of whether or not you are on track to retire at age 65. Also complete our risk tolerance questionnaire. Does the amount you have invested in stock funds match your risk tolerance? Do you have enough in stocks to get the growth you need to reach your retirement goal? You might find that you need to accept a little more stock market exposure to reach your retirement goal. Remember to choose an investment strategy that you are comfortable with and stick with it during good markets and bad. Don’t let a short-term market decline cause you to change your game plan.
Review your bank statements.
A key to managing your finances is understanding your expenses. Your bank statement shows the total deposits and withdrawals for the month. DO THIS: Add up the total withdrawals from each of the last twelve statements you received. Next, divide the total by twelve to get your average monthly expense. Think about this number. Is it more or less than your average monthly deposit? Are there any changes that you could make to reduce your expenses? Saving more for retirement now, will have a bigger impact on your account balance than the rate of return you get on your investment. Is there any way you could save more now? Don’t just think about this – Lace Up you Cleats and GET THIS DONE!
Use Automatic Increase tools inside your retirement plan.
Most company retirement plans have the ability to automatically increase your savings rate each year. Go ahead and turn this feature on so that you are slowly but surely saving more money each year. The slight increase each year will hardly be enough to notice out of each paycheck, yet the long-term results over your career will be significant.
OK Team, you know the game plan. How bad do you want it? Are you willing to do what it takes to win? Now get out there make it happen! Vince Lombardi coached the Green Bay Packers to two Super Bowl victories. He famously said, “Winning is not a sometime thing; it’s an all the time thing. You don’t win once in a while, you don’t do things right once in a while, you do them right all the time. Winning is habit. Unfortunately, so is losing.”
I hope this locker room speech will help you do what it takes to realize your dreams. Making these halftime adjustments is up to you. No one else can do it for you. If you have questions, please give us a call today. Now get out there and WIN YOUR GAME! Go get’em Champ!
This commentary is for informational purposes only and does not constitute investment advice nor reference the appropriateness of any individual investment alternative.
Advisory services offered through Prime Capital Investment Advisors, LLC. (PCIA) a Registered Investment Advisor. Prime Capital Investment Advisors doing business as Qualified Plan Advisors, “QPA.” 6201 College Blvd., 7th Floor, Overland Park, KS 66211.