 | Chris Senecaut is a Financial Representative for Modern Woodmen Fraternal Financial. As a company they will be lowering their rates effective December 27, 2011. All transfers must be made by that date to get their 3% guarantee and we will still have their guaranteed return of principal. Chris looks forward to helping you get through this economic downturn and prosper in the future. If you would like to learn more please call 620-724-0833. |
Banking & Finance
2011-11-21 12:09:58
Too late for financial planning?
Q: My wife and I are in our 40’s and have always struggled to make a decent living. Since we’ve always lived paycheck to pay check, we have not done any financial planning. We do not have savings, but we also do not have any debt. I have pretty much resolved that I will need to work until I die. Is it too late for us to start financial planning, given the limited budget?
A: It’s never too late for financial planning and believe it or not, it sounds like you are on good solid ground to make some gains. In the scheme of things, 40 is a relatively good time to get things in order.
It’s your choice whether you want to start saving now or work until you
die. The problem is many people get frail or sick or experience dementia in their old age and can’t earn income even though they have decades more to live. Add to that the fact that most need daily care that isn’t covered by health insurance, Medicare, or Medicaid. I hope that that won’t happen to you, but there are things you can do to make strides for a more secure future.
First, begin a retirement plan. You can create it yourself or get the help of a financial planner. Saving to an IRA is very simple and anyone can open and contribute to one. Deposit at least a few dollars into it with every paycheck. If your income is low enough to get the tax break from a traditional IRA, open that. If not, open a Roth IRA. To start, don’t worry about all the investment options. Just put the IRA money in the FDIC insured savings investment option for your IRA.
Next, consider all your options now, while you can. In your 40’s a second job is still a real option and can give you a good chance at retiring. Also, considering a second job now is wise as the options decrease with time.
Finally, talk to a financial advisor about all of your options. You may have more opportunity than you realize and having a plan and knowing the facts can minimize or eliminate any discouragement you may feel.
When you have a plan in place, it is much easier to work toward a specific goal.
Good luck!
