Financial advice for individuals who are about to retire


Whether we like it or not, the only way we can be stable financially is if we invest as well as save as much as possible. In other words, we need to keep our liabilities to the minimum and endeavour to save as much as we can. Excellent financial advisors opine that individuals should start saving for their retirement as soon as they land a stable job. You might think that you have all the time in the world but you will be surprised just how fast time flies. Saving money should therefore, be something that you teach yourself and commit to from the very first job you land.

Unfortunately, not many people take to savings from the very first time they land a job. A lot of people postpone saving for retirement and only wake up from their slumber when they have 10 or fewer years to their retirement. While a decade to your retirement is not sufficient to adequately prepare, it’s better late than never. If you are nearing retirement, the following tips or rather financial advice will go a long way in ensuring that you enjoy your sunset years with minimal stress.

Set up an emergency or reserves fund

Most financial advisors opine that you should have in your reserve or emergency fund a sum of money equal to 6 months of your current monthly salary. The reserve account should be easily accessible and safe. Remember that you won’t be privy to regular income in retirement and therefore it’s greatly recommended that you have enough in your reserve account to last you for a period not less than six months as you pull yourself together.


Start saving for your kids’ college

Remember that in your retirement you won’t be receiving a salary monthly and therefore it’s greatly recommended that you start saving for your kids’ college fees as early as possible. In fact, you need to start saving for your kids’ education from the moment they are born. The earlier the better. It will ensure that you have peace of mind in your retirement in the knowledge that your kids will go ahead with their education without having to worry about their fees.

Resolve loans, credit card bills or any outstanding debt you have

You definitely do not want to retire saddled with debt. You need to start as early as now before your retirement to resolve all debts as well as outstanding loans that you might have. Endeavour to reduce all credit card debts or rather eliminate all your loans to free up your income. As you near retirement, most of your income should go towards saving as opposed to paying off debts.

Have an effective retirement plan

Don’t just sit back and say that your pension from the government or company will be enough for you in your retirement. Work with your financial advisor for an appropriate retirement plan. Open an account specifically designed for your retirement. Deposit money in that account regularly and you can be sure that your retirement will be smooth sailing.



When should you talk to a financial advisor?


Getting a hold on your finances is something that is recommended no doubt. It is important that you become financially prudent from the get go. However, most people give the aspect of saving or rather prudent financial management a wide berth because they believe that they have many years before them to make money and save. Before they know it, they are nearing retirement with no savings to show for it. While there are those of us who are sceptical when it comes to enlisting the help of a financial advisor, what we can’t run away from is that we need their input and financial expertise every once in a while. In fact, you need to talk to a financial advisor for financial advice in the following instances.

When you get hired for your first job

Don’t believe the hype that you have many years of work before you and therefore you can always save later. It is important that you start off on the right footing. You need to talk to a financial advisor from the moment you get hired for your first job. It doesn’t matter if you are just 19 years of age or how big or small your salary is. Getting the right financial advice at this point will prepare you for the future. It will help you start developing a saving habit from the start which will indeed pay off dividends many years to come. Put to good use your income from the start and you can be rest assured you will be smiling many years later when your finances are in order and you don’t have to deal with the stress of being broke because of past financial mistakes.


When thinking of retirement

Do you feel it’s time to hang up your boots and enjoy your retirement in peace? Well, if you have been seriously thinking about retirement, it might be time you talked to a financial advisor. A financial advisor will be able to clearly project your needs after retirement and help you come up with a financial plan that will cushion you when you are no longer on the job. Like everything else, endeavor to start planning for your retirement early enough. Save towards retirement and you can be sure that you will have everything smooth sailing when the time to retire comes calling.

When you receive a windfall

Think about it. How many times have you seen a person who won a jackpot and within no time became broke? Well, this is something that happens more often than not. It all boils down to poor financial management. If you are looking forward to receiving a huge sum of money such as a bonus payout, an inheritance, a big raise or you’ve just won the lotto, you should consider talking to a financial advisor to help you put the money to good use. Don’t blow the money with expensive getaways or vacations. Within no time, you will find yourself with nothing. A financial advisor will guide you in the right way, show you profitable investments you can go into and so on and so forth.

When you are thinking of passing over your wealth

Granted, there will come a time when you will part with your wealth. When that time comes, a financial advisor should be your best friend or rather should be the person you talk to first. A financial advisor or planner in this case, would be instrumental in reviewing accounts of beneficiaries, reviewing expenses applicable and also suggest or rather look for ways of drastically reducing the estate taxes. You probably are not versed with tax laws or the changes in the financial markets and therefore a financial advisor will make it possible for you to make informed decisions.

When you are getting divorced

A divorce is certainly not a bed of roses financially. When you are leaving a marriage, chances are that you might act emotionally and by so doing end up making financial mistakes or losses. You need to talk to a financial advisor who will approach the whole process with a sober mind. A financial advisor will be unbiased, level-headed and therefore better suited to nip in the bud any financial losses that might occur during a divorce.