How well have she and her husband been preparing for retirement, and where is there room for improvement?
I will turn 50 this year. As a financial planner, I mentally rehearse conversations with my Generation X clients about reaching and surpassing this beautiful milestone in their lives. I recall a bundle of feelings of dread and excitement about the decisions made and future opportunities to live the best life possible.
As I reach out to my clients, you would imagine I would give myself the same attention. I hope my confession turns into wisdom for you and me.
where are you financially?
Each year, tax season, my husband and I update our lifestyle plans (income and expenses or budget) and net worth statements (all assets and liabilities) and submit tax forms and statements to our tax professionals.
Real-world conditions constantly challenge our intentions to maintain these financial best practices.
We look back at how our annual decisions affect our checking accounts, savings, investment balances and asset values based on how we spend and save. About many conflicting goals, such as managing the family budget, paying for a daughter’s education, redistributing funds to a growing business, paying estimated taxes, saving for retirement, and securing funds for college visits and vacations. Discuss.
But it’s not clear that our financial habits and year-long review will give us reassurance that we’re on track for a comfortable future. We are fortunate enough to live within our means, pay off credit cards monthly, save in high-yield savings accounts, invest in brokerage accounts, and maximize our 401(k) deposits. I know rules of thumb such as catch-up contributions) and Health Savings Accounts (HSAs), obtain state tax deductions for contributions to the 529 College Savings Plan, and secure insurance and wealth planning documents.
The real world situation — changing jobs (including my season as Chief Family Officer, stay-at-home mom, or home engineer), living in a high cost of living area, and setting up a business — makes it difficult for us to maintain these finances. Consistently challenge your intentions. best practice.
employment a financial planner
To be honest, I dread knowing the answers to two looming questions: What is the cumulative impact of our financial situation and decision-making? Do you? Helping you answer these questions with confidence is one of the many valuable attributes of a financial planner.
A survey conducted by MagnifyMoney in March 2021 found that 76% of Gen Xers are not hiring a financial planner.
Fortunately, it’s never too late to start your financial planning journey. I believe in this mantra and hire a financial planner as one of her 50th birthday gifts to myself.
Ideally share my family values, be culturally capable, believe in holistic financial planning, lead EQ (engage in our humanity) and IQ (know technology) Find planners who have values that elevate
These traits reflect the team I admire at my company, 2050 Wealth Partners, but I believe they are true for my family, my team, and the people we serve. I look forward to new partnerships that will give me a fresh perspective on what I believe.
Making this investment for me and my family is worth it. Don’t hesitate to add this recurring line item to your lifestyle plan.
Health is an asset
In my quest to become wealthy, as I define it, I have come to realize that physical health is a key piece of the puzzle of financial health. As my husband and I reach retirement age, Fidelity’s 2022 retiree health care estimates show that she will save about $315,000 (after tax) at age 65 to cover medical expenses in retirement. I admit there is a need. We are not far away! This figure does not include long-term care costs to support age-related activities of daily living (ADLs) as needed.
I turn 50 this year, and I am confident from my confessions and reflections that we can all achieve the life and legacy we want and deserve.
I confess to neglecting my health due to the increased stress over the years balancing my life and career as a wife, mother, sandwich generation daughter, employee, and entrepreneur. While Black makes up 1.9% of 94,968 certified financial planners, according to the CFP Standards Board, we recognize that advice on staying healthy is just as important as financial guidance. .
We focus on improving physical health as a way to proactively manage health care costs, but this includes addressing mental health. Life and work trauma often reduce the ability to maintain physical health and affect financial health.
I’m proud to be one of 26% of Generation X, according to the American Psychological Association report. This has extended this wealth opportunity to Generation Z daughters who have had treatment or therapy from a mental health professional, according to a report from the American Psychological Association.
I turn 50 this year, and I am confident from my confessions and reflections that we can all achieve the life and legacy we want and deserve. Focusing on the right mindset, having the right team, and doing the work will help us all as we navigate our opportunities to live longer and better.