SAN DIEGO - May 12, 2020 - (Newswire.com)
As of this week, over 30 million Americans have filed for unemployment. This economic upheaval is forcing many Americans, 45 million of which were slated to retire this year, to reevaluate their finances and navigate the “new normal.” Steve Sexton, financial consultant and CEO of Sexton Advisory Group, shares some practical tips on how to assess and improve financial health:
- Assess your financial situation – “If you recently got laid off and you were planning to retire soon, the first question I ask my clients is “can you maintain your lifestyle without working?” says Sexton. “To figure this out, you’ll need to determine all sources of income, your source of health insurance until you qualify for Medicare, and any major expenses coming up, like a home renovation or a new car. Don’t forget to take into account how inflation might impact your cash flow in the next few years.”
- Seek temporary employment – Financial help from the stimulus bill is expected to run out on July 31, which means jobless workers would only get their state unemployment benefit after this date. For many people currently without jobs, this means looking for temporary employment that allows them to earn money now. This includes jobs that could be outside of one’s usual field of work.
- Downsize and/or reduce expenses – “Regardless of whether retirement is a short-term goal or not, the unpredictable nature of the economy means it’s important to eliminate any unnecessary spending right now,” adds Sexton. This can include getting rid of your cable service, canceling wine club memberships or app subscriptions, moving to a less expensive home or sharing a car with your spouse.
- Understand social security options– most Americans can’t rely on social security checks alone, but selecting the right benefits can make a big difference in the long run. There are 567 different ways to elect benefits, so it’s crucial to be educated on which option will provide the highest income in retirement.
For more personal finance guidance from Sexton, go to www.retiresmartmag.com to RSVP for a free retirement planning webinar on Thursday, May 21 at 4 p.m. PST.
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Original Source: Sexton Advisory Group Shares Retirement Planning Tips During Uncertain Economic Times