Keep Retirement Savings Safe: Tips

With economic uncertainty grabbing daily news headlines, who isn’t worried about keeping their retirement savings intact?

“It starts with knowing approximately what monthly amount you wish to live on in retirement,” said Michael Evans, a 39-year veteran of Primerica Financial Services. “Too often, we see individuals working 35 to 40 years and finding themselves unprepared financially for their golden years.”

Yet it’s never too late to set up a written financial game plan; to start saving, ideally, 10 percent to 15 percent of your income toward retirement savings; and to calculate how best to combine Social Security, 401(k) investments and any other benefits to live the same lifestyle or an even better lifestyle in retirement, Evans said.

“People need to sit down with a financial professional to walk through this process,” Evans said.

Remember to factor in inflation to get a clear picture of how much you will need each month, Evans said.

Then, total up your monthly expenses.

Does your income cover your expenses?

If it does, determine the percentage of your monthly income that you want to live off of. Your goal is to build a nest egg large enough to live on without having to return to the workforce. This is what both Evans and Joseph Porter, a regional leader and fully licensed investment adviser representative who runs Primerica’s satellite office at 1720 E. 87^th St. in Chicago, refer to as your “financial independence number,” or F.I.N.

A good rule of thumb is to anticipate needing 80 percent of your current income, Evans said.

Once again, it comes down to a specific number, Porter said.

“It’s hard to win a race if you don’t know where the finish line is,” Porter said.

Both Evans and Porter know from experience that you may have to act quickly to get set up financially.

Evans started his career in financial services after not realizing his goals in corporate America.

Porter joined Evans in 2011 after a failed restaurant venture, doubling down on the financial principles Evans had shared with him three years earlier. Porter prides himself on helping people learn and apply the principles on How Money Works™ financial education tools.

Consider setting up two accounts other than your retirement account: An emergency fund and a short-term goal account, Evans said.

For emergencies, consider an account you don’t readily have access to, such as a money market account with a mutual fund company, Porter said.

Set aside in the emergency fund three to six months of monthly income. This may take time, but it’s better than having to dip into your retirement savings or create new debt, both men agree.

In the short term, as the holidays approach, practice prudence and pre-plan to avoid going into debt, Porter said. Consider giving to the children and grandchildren both a small gift and some type of investment. “It’s a great way to teach the needed discipline of putting money aside early,” he said.

For the long term, everyone should consider learning about legacy planning. Whether it’s creating a will or making sure the beneficiary designations on your investment accounts are in order, planning ahead can ease the burden on your loved ones and help ensure that your financial affairs are settled according to your wishes.

To contact Evans or Porter for a complimentary financial needs analysis or to learn the 3 D’s of Investing and more, email Evans at

michael.evans@primerica.com

or Porter at

josephgeneporter@primerica.com

or call:

708-893-0621 or (312) 225-0657

or visit https://www.primerica.com/mikeevans

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