Creating a Financial Plan
Is 60 the new 40? A Today show survey found that 70% of sixtysomethings felt younger than their age. However, while boomers may be as physically fit as younger colleages, they would be wise to act their age when it comes to finances.
Whether you’re just months from retirement or, like a growing number of Americans, planning to remain part of the workforce, this decade can mark a personal and professional inflection point. Making the most of your 60s and beyond means taking the right steps to ensure a financially secure future.
“This is a period of transition,” says Deena Katz, a personal financial planning professor at Texas Tech University and co-chairperson of Evensky & Katz/Foldes Financial Wealth Management. “You will be making important decisions that will affect your next stage of life.”
1. Strategize Social Security
This is when your hard work starts paying off. You can begin taking benefits as early as age 62, and as late as age 70.
Consulting a financial advisor who understands your comprehensive financial picture can help you make a good choice. “Your decision should be based on your individual situation,” Shebesta adds.
2. Review Your Retirement Expenses
You need to have a realistic idea of your future financial expenses when planning your retirement lifestyle.
3. Update Your Estate Plan
Having an estate plan isn't enough if it isn't kept current. If you have experienced life changes, such as a divorce or marriage, you may need to amend certain documents. Here are three things to keep in mind:
While these tasks require some time and effort, once they’re completed you can start thinking about making the most of the years ahead.
What's next: 3 Smart Money Moves in Your 70s
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.