By Jim Hallisey, Ozark Financial Services / Rogers
Here’s a good question: How much have you been able to save from birth until now? And another: How long would it last if were you to retire today? Could you live on your nest egg or the income it would generate?
It probably comes as no surprise that small business owners are notorious for having no retirement plan. If they do, it is probably grossly under funded, often because of the cash demands of the business.
Why? Author Patrick Kelly, describes it well in his best-selling book Tax-Free Retirement. “They know they should. They know time is quickly passing. But they do what we all do – procrastinate. Unfortunately, the future has a way of sneaking up on us like a hungry mountain lion and many business owners find themselves ready to retire without the financial means to do so.”
An estimated 60% of retirees go broke in retirement.
Have you ever seen a time more important to take personal responsibility for our family’s financial future? The Federal government is broke. (www.USDebtClock.org )
Many states are on the brink. Pension plans are terribly under funded. An average of 10,000 Baby Boomers a day are being added as beneficiaries to the rolls of Social Security, and will begin to enter the Medicare system beginning in 2011. We can no longer count on the resources we once did. The stock market after reaching two historic highs in the last decade is at levels approximating where it was in 2000. Changing times and circumstances require changing strategies.
What’s the answer? Plan your own future. Here are 10 suggestions for planning a more secure financial future.
1. If you have a nest egg, protect it.
2. Consider putting money in accounts that are safe from market risk.
3. Use accounts that will grow to stay ahead of inflation.
4. Take advantage of tax free/deferred growth.
5. Create income streams for life.
6. If you do not have a nest egg, start accumulating one now.
7. Pay off consumer debt as quickly as possible.
8. Be sure you have the needed insurance protections.
9. Focus not on beating the market, but creating lifetime income streams. Know how much income your nest egg will generate and how long it will last.
10. Brace yourself for higher taxes and lower your expectations for entitlements such as Social Security and Medicare benefits.
Picture yourself 10 years from now. Will you be more self sufficient, financially free, better prepared for retirement than you are now?
It is said the truth will set you free. It may make you miserable first. Proper planning and implementation is a choice you can make. Is 2011 your year to refocus, repair, and rebuild your retirement plan? Or start one? No one else will do it for you, and it may be later than you think.
Jim Hallisey has served 11 years with Ozark Financial Services helping people prepare to live their hopes, dreams, and goals in retirement. Learn more at www.jimhallisey.com or follow him on Facebook. This article provides general information and is not intended to provide legal or tax advice. Email Jim at jimhallisey@ozarktax.com.
