Post-divorce, it's common for individuals to feel overwhelmed and emotionally drained. Unfortunately, the temptation to procrastinate on financial matters, especially retirement planning, can be strong. Women in particular have a tendency to avoid retirement planning and often opt for cash assets than rather retirement assets in the divorce settlement, placing them even farther behind in their retirement capacity. Delaying this crucial step in financial planning can have severe consequences, as time is one of the most important allies when it comes to building a retirement fund.

THE DANGERS IN PROCRASTINATION:

Lost Compound Growth Opportunities: Time is money, especially in the world of saving and investing. By procrastinating on retirement planning, you permanently miss out on valuable years of compound growth. Starting as early as possible allows your investments to benefit from compounding returns, significantly boosting your overall savings and reducing the amount you will personally need to set aside.

Increased Financial Vulnerability: Failure to address retirement planning post-divorce leaves you severely vulnerable to financial instability in your later years. As life expectancy increases, the risk of outliving your savings becomes more significant. You need to ensure you have sufficient funds available to you at a critical time in life where you may not be able to work.

3 STEPS TO TAKE NOW:

1. Set Clear Retirement Goals: Be specific about what you want your retirement to look like and how much money you will need to fund that lifestyle. Consider factors such as general expenses, potential healthcare needs, and other costs associated with your desired retirement age. Setting clear goals will guide your savings strategy and help you stay focused on the bigger picture.

2. Develop a Contribution Strategy: Compare how much you already have set aside for your retirement years against the total amount needed. You can include your social security estimate, any current retirement savings, and expected alimony if this will continue into your retirement years. How much will you personally need to save to make up the difference in what you already have set aside and what you need to have?

   Take advantage of retirement account options available to you, such as employer-sponsored plans (401(k), (403(b)) and Individual Retirement Accounts (IRAs). Be aware of annual contribution limits and make sure you are eligible to contribute to these types of retirement plans. You can maximize your contributions to capitalize on potential tax advantages and accelerate your retirement savings.

3. Review Your Investment Allocation: Make sure the funds contributed into your retirement accounts are invested appropriately for your time horizon, risk tolerance, and comfortability with investments. Ensure your investments are diversified by allocating among various asset classes to mitigate risk and enhance the potential for long-term growth.

HOW A CERTIFIED FINANCIAL PLANNER® PROFESSIONAL CAN HELP:

One of the primary reasons for procrastination is not knowing where to start. Speaking with a financial planner can help you feel more comfortable and confident in your overall financial wellbeing and help ensure you are on track for the retirement you imagined. A few things a Certified Financial Planner® professional can help with, include, but are not limited to:

• Calculating your current retirement savings vs. your retirement funding need. How much do you need to set aside each month?

• Calculating for inflation during your saving years and your retirement years. Are you actually saving enough?

• Helping you prepare for the rising costs of healthcare in retirement.

• Educating you on the financial markets and helping you find a strategy that fits your personal needs.

• Developing an investment allocation that aligns with your time horizon, risk tolerance, and retirement needs.

• Providing continued support and reviews to help ensure you stay on track to reach your financial goals.

YOU DO NOT HAVE TO DO THIS ALONE. We are here to help you understand your needs and complete the calculations so you can focus on what’s most important to you. Having a financial professional as your copilot helps lessen the chance of procrastination and helps you achieve the life you desire - now and in the future.

EMBRACE the opportunity to take control of your financial destiny by addressing retirement planning head-on. Seek guidance from financial professionals, explore available resources, and make informed decisions that align with your post-divorce reality. Remember, the earlier you start, the more resilient your retirement fund will be in the face of life's uncertainties.

Contact us today to schedule your free consultation.