Research shows planning for retirement 5-10 years ahead has an increase of wealth of $157,427 for people with a retirement plan, compared to those without a plan.
It’s never too late to start planning and saving for your retirement, but the best time to start is always today.
Resolving to set up a financial plan is not a decision that should be taken lightly – if done properly, it could help increase your wealth and set you up for a comfortable lifestyle especially in retirement.
However, it is essential for couples to make sure they are both on the same page when it comes to financial planning, otherwise your strategies could be derailed before they even begin.
Making sense of your financial values
As a couple, you first need to take the time to understand what your joint financial values are. Ascertaining what is important to you in both the short and long term will help provide a basis for your financial plan. It is not uncommon for people to be confused when they are asked what is important, but once your ideas are on track, you should find it becomes much simpler. Looking at where your finances are at the moment and where you would like them to be is a good place to start – try to aim for five goals you can strive to achieve as a couple.
Discuss your priorities
It is at this stage of the process that couples need to invest some time in talking about their finances and what they would like to achieve in the future. Regardless of whether you are a newly cohabiting couple or have been together for decades, this can be a worthwhile exercise that helps you see how consistent your objectives are. There may be some areas that you disagree on, in which case it is essential to come up with a strategy that meets both your needs.
Working towards your goals
Once you have established what your goals are, the next step is to decide what measures you will take as a couple to ensure they are reached. If one person is more committed to the cause than the other then problems may arise, meaning it is essential to work as a pair.
Discussing financial issues on a regular basis is the best way to make sure you are both happy with how the plan is going so far and whether any amendments need to be made along the way.
Should your objectives seem harder to achieve than you first thought, why not enlist the help of a financial planning advisor? They can give you helpful hints and tips on how to keep your goals in focus.