Whenever I get faced with a question along the lines of, “When is the best time to start planning/saving for retirement, I almost always answer something along the lines of, “now!” Still, if you’re interested in making a change in your savings scheme, the end of the year/start of the new year is a great time to get the ball rolling because, if you’re like most people, the end of the year offers an opportunity for reflection, and with it, energy for making improvements in your life.
With that in mind, I wanted to offer a grab-bag selection of planning tips to get your gears turning as the year winds down.
1. Get advice, and get it now
There is a common line of thinking to those who have just started out saving—that they haven’t yet saved enough to seek professional financial advice. Unfortunately, this line of thinking keeps people from getting the advice they need before they make mistakes. If you start out early by making good money habits with a smaller income, you’ll be far more likely to keep those good habits once your income and savings grow.
Still don’t think you have a need for a financial planner? There still are ways to find useful financial planning advice. If you have a 401(k) through your employer, there’s a good chance that your company has a dedicated representative who is available to discuss plan options and other financial matters with you, often at no additional cost to you. Talk with your HR department to learn how to schedule a time to take advantage of this resource.
Miramontes Capital has a particularly in-depth understanding of some of Southern California’s biggest employers, including, SoCal Gas, Chevron, Edison, and Verizon to name a few. This means we’re able to offer highly specified retirement advice, with attention to specific plan and benefit details.
2. Start thinking about next year
If you could make any improvement over your retirement planning and saving for 2016, what would it be? If your answer is to save more, the power is in your hands. When is the last time you increased your contributions to your 401(k)? It can be common for planners, when signing up for their plan, to contribute up to the company match, but not think about giving more. However, increasing your contributions just 1% can make a huge difference over time, and that small percentage is unlikely to be missed from your monthly budgeting.
Have a specific question about your retirement? Call today to see what we can do for your retirement planning needs.
Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This video is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place. Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This video is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place.