Do YOU have questions about financial issues? No judgement here – we KNOW you do! Why? Because we have these questions OURSELVES and hear these topics brought up on a daily basis.
Below, we’ve compiled some answers to a few of the questions we hear most often. If you have ever wondered the below, we hope this content helps provide a little direction.
1. Is it better to save for retirement or pay off my debt?
These days, the majority of Americans have some kind of debt. Whether you are saddled with student loans, credit card debt, or other financial obligations, the reality is that it can be somewhat tricky to think about saving for anything else when you know that interest is adding up quickly. That said, retirement savings and investment vehicles don’t just save for themselves. In order to ensure that you’re prioritizing “future you” as much as “current you”, you’ll want to dedicate some savings and funds towards your retirement along with your monthly debt payments. The most simple way to address this is to make all of your minimum monthly payments (as well as your bills) and bank any extra, remaining funds right towards your retirement. We know, it’s definitely not as alluring to put extra funds in a retirement account (…affording that new designer clutch or taking a much needed spa day sounds infinitely better), but doing so will make a big difference in setting “future you” up for the retired life you find yourself dreaming about.
Whatever you do, don’t wait to start prioritizing your retirement until AFTER you’ve paid off all of your debt. The fact of the matter is, it can take years to pay off all of those obligations. While we certainly want you to make all of the necessary minimum monthly payments on those obligations, we wouldn’t want you to outright ignore your retirement needs and forfeit years of earning potential on those investments.
2. How do I know when I should meet with a financial advisor?
Anytime you’re looking to get your financial ducks in a row, you’ll likely want to meet with a financial advisor. Think about it – life is expensive and requires thoughtful planning in order to meet its many demands. A financial advisor can help you strategically save, invest, and plan for those big events in your life (purchasing a home, saving for retirement, planning a wedding, affording educational opportunities, etc.) as well as ensure you’re optimizing your current financial situation.
Other times you’ll want to meet with an advisor? When you experience any major life change: new job (you’ll want to have a game plan for that old 401(k)!), graduation (hello student loans!), divorce, getting married (update that beneficiary!), adding to your family, etc.
Most advisors offer free consultations, so take them up on their offer and meet with them! If you have been meaning to get those financial needs in order and finally feel “settled”, then consider this a sign to take the step today. We offer free consultations as well, and would love to hear from you!
3. Where can I learn about the best credit card offers?
We love bankrate.com for learning about and analyzing the best available banking and credit card offers. This website has an abundance of incredible resources, so give it a look today!
One word of caution: when looking into different credit card offers, be sure to read the fine print and understand the nuances. Often times, cards will entice consumers with offers of 0% interest and other perks. While these can be very appealing offers, keep in mind this one thing about all offers: inevitably, they eventually expire. So, if you do decide to apply for a low-interest credit card with a great introductory offer, be sure you understand and plan for the exact time frame when that offer may expire and your interest rate will be increased.
4. How much should I really be saving?
Most experts recommend individuals save around 10-20% of their income to fund things such as emergency funds, retirement, investment accounts, etc. While how much you can actually save largely depends on your situation and your immediate needs, aiming to save at least 10-15% of your income annually is a great starting point.
5. How much money do I need to get started investing?
Every advisor is different when it comes to their required minimum investment amounts, so be sure to ask about this during your free consultation. While some may have higher minimums, there are others (and online advisors) that don’t have any minimums. While every advisor is different, here’s the important thing: if you’re ready to invest, don’t wait. Find an advisor who will work with you and your current investment needs, or else place those funds in a high-yield savings account and continue to fund your savings until you have a sizeable amount to begin with. Time is such an important ingredient in the investment recipe, so if you are ready to get started and know the options available to you (as well as have identified your risk tolerance), then don’t delay.
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