When it comes time for you to retire, don’t think it is time to stop planning for your financial future. You may still have a lot of life left to live and Matson certainly hopes that’s the case! A lot of people are excited to retire because they can stop working so hard and start enjoying every day to its fullest. While the perks of being retired can be substantial, you still need a game plan designed to allow you to continue to live comfortably without worrying daily about going broke. The notion that the cost of living during retirement will be cheaper is becoming less and less relevant.
Think of all the things you can do in your spare time: travel the world, take extended vacations, buy a boat and restore a classic car…the list can go on, and the list can get very costly. In order to do all the activities you want to do in retirement, you have to make sure you continue to manage your money wisely. Take it from Zack Shepard who is the Vice President of Communications at Matson Money. Matson Money manages approximately $6.2 billion for investors nationwide. Of those investors, some are in their retirement years and continue to plan for their financial future. You should, too.
“Retirement activities often cost more money than expected,” said Shepard. “And people are vastly underestimating what a retirement is going to cost during year one and beyond.”
People must continually plan, even after leaving the workforce, as inflation can erode a poor financial plan very quickly. You might have a 401k to support you through your retirement years, but is it enough to cover all your future costs? It’s pretty much impossible to predict the future, and people may not be able to rely solely on their 401k and social security checks to make it through any given amount of time. Continuing your investing plan into your retirement years can help you continue your journey toward investing peace-of-mind. However, sometimes those plans need some guidance and advice. As you prepare to retire, or you are just starting your retirement, be sure you continue investing in your financial future.
The year 2014 has wrapped up and many are ready to see what the New Year has in store for them. Every year some people make the same resolutions that involve dieting, learning something new, or making more money. However, it’s always a little hard to stick to our resolutions because we often just lose our willpower or motivation. Try making 2015 different by sticking to your goals. If improving your money management skills is on your list, then check out our tips for helping investors maintain their momentum through the year!
Sometimes money can be hard to come by the time you pay all your bills. However, there are ways to squeeze some fat out of your budget so you have something left over for saving and investing. Take a look at your monthly spending and figure out where most of it is going. A large portion is most likely being spent on the roof over your head and utilities – while it is hard to find extra cash in those expenses, consider going green to save money on utilities like using less electricity/gas and water.
For example, taking shorter, less warm showers can save on the gas or electricity needed to heat the water and use less water at the same time. Turning out lights when you leave rooms and switching to LED or fluorescent lighting can lower electric bills and raising thermostats one or two degrees in the summer and lowering them one or two degrees in the winter can make a dramatic difference in bills for heating or cooling your home. You can get big savings in your monthly food budget by switching your groceries to store and generic brands, stocking up on basic food staples during store sales and clipping coupons.
Once you get your budget under control and begin saving money on a regular basis by implementing some of the tips described above, you can begin working on ways to seek to grow those savings through investing. Investing in the stock market can be both exhilarating and risky, because the stock market fluctuates. Sometimes it moves in your favor and sometimes it will go the other way. At any rate, investing the cash that you have saved wisely creates the opportunity to achieve benefits for your wallet as long as you realize that no one can predict where the stock market is going and there is no magic time to enter the market.
With that being said, Matson Money advises their clients to invest in diversified portfolios. A well-diversified portfolio reduces investment risk and creates the opportunity to achieve market rates of return without taking excessive risk with your savings. Matson Money also recommends that clients focus on the long term and avoid trying to invest based on what’s being touted by the media on any given day. This approach creates opportunities to meet your personal investment goals without losing sleep every night over how your portfolio is performing. Trying something new in 2015 could be exciting! But always recognize that not all stock market strategies are the same, nor do they all produce the same results. Start making small adjustments in the way your spend money now so you can start investing in your future tomorrow!