Too often we go through life thinking that things are going just fine. There are warning signs along the way but we just don't pay attention to them. I'm going to bet that most of you have had this problem at least once in your life.
Here are 5 things I would like you to think about to make sure that your plan doesn't let you down.
Don’t draw money out of an account that’s tied to something else.
If you have an account earmarked for retirement make sure you don't spend the money on something else like a big vacation that you really can't afford right now. Sometimes learning how to defer the things that we want will pay off for us in the end.
It's really easy to take money that you think you're going to need in 10, 20 or even 30 years from now and believe that is going to be easy to replace it down the road. The fact is you’re working really hard to put money away for the things that you think are important later on in your life. Don't let bright shiny objects get in your way of achieving those long-term outcomes.
Update your plan and your assumptions at least every three years.
It's really easy to let your plan get out of date. Things just happen in your life that should cause you to rethink your plans. If you've done a financial plan and everything looks good circumstances can change. Markets go up and markets go down, your job situation might change, your relationship situation might change or hundreds of other things could easily get in your way.
You really need to think about changes that have happened or changes that might happen in the future. Recasting your plan every three years will only take a little bit of time and will help you have peace of mind when it comes time to think about your future.
If things don’t feel right, there’s a very good chance they aren’t right.
Too often we have this feeling in our stomach that things just aren't going in the right direction. Do yourself a favor, don't ignore the feeling, it's there for a very good reason.
Often your subconscious is going to tell you something that might be uncomfortable for you to hear. Paying attention to these messages is a good thing. When you're having subconscious thoughts about potential problems dealing with them sooner than later will make your life better.
When you’ve had a major change in your life, redo your plan.
If you gone through a divorce, recently retired, lost a loved one or sold your business then you really do need to visit with your financial planner and redo your plan. You want to make sure that what you thought was going to happen is likely going to happen.
Better yet, if you know one of these major changes is going to happen make sure you visit your planner and review your plan before that major change happens. You want to make sure the assumptions you had are still valid.
Learn how to use the word no.
This is a biggie. You're probably going to find there are conflicting uses for money you save for retirement. If you want that money to be there when you need it, you're going to have to learn to use the word no.
You might have to say no to somebody in your family or you might even have to say no to yourself. If you're saving money for retirement and you find yourself pulling that money out of your retirement fund there's a good chance it won’t be there when you need it.
Wouldn't it be nice if you said no instead and didn't have the problem that could occur if you said yes and spent money that you were sorry you spent?
Why don't you click here and let me know what you think about this and if it's time for you to review your financial situation?