Financial planning is not just about numbers and data; it’s also about our mindset and emotional well-being. Before diving into the statistics, let’s explore the crucial aspect of gratitude and contentment. In retirement, the ultimate goal for many is to increase peace of mind and reduce financial anxiety. One powerful way to achieve this is by daily practicing gratitude and reminding ourselves of the things we are thankful for in our lives, both financially and in other areas. By adopting this mindset, we can make smarter money decisions aligned with our true values, leading to a fulfilling retirement.
The Reality of Retirement Savings – Ahead of the Curve or Behind?
When it comes to retirement savings, the statistics may surprise you. While it’s common to feel like we should be doing more, the reality is that you might be ahead of the curve. Over half of Americans lack enough savings to cover an unexpected expense of a thousand dollars. However, if you can cover at least six months of expenses, you’re already in a better financial position than most. Similarly, the median retirement savings for Americans is $134,000, with the average being higher at $408,000. If your savings are above the median, you’re already doing better than many others.
The Importance of a Formal Retirement Financial Plan
While you might be ahead in certain financial areas, there’s one critical aspect where many people fall behind: having a formal retirement financial plan. Shockingly, according to a recent study from Schwab, only a third of individuals have a documented financial plan. Moreover, far fewer have a retirement-specific plan that addresses income withdrawal strategies, tax planning, and risk reduction during retirement. Having a comprehensive retirement plan is essential for optimizing your financial future and ensuring a smooth transition into retirement.
Embrace Gratitude and Plan for a Secure Retirement
Even if you feel like you should be doing more, take a moment to appreciate how far you’ve come. Practicing gratitude and contentment can have a profound impact on your financial decisions and overall well-being in retirement. While the numbers may show that you’re ahead in some areas, remember the importance of having a solid retirement financial plan. By combining gratitude with strategic planning, you can achieve the financial peace of mind you desire and enjoy a fulfilling retirement.
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Disclosures: Securities offered through LaSalle St. Securities LLC (LSS), member FINRA/SIPC. Advisory services offered through LaSalle St. Investment Advisors LLC (LSIA), a Registered Investment Advisor. Streamline Financial Services is not affiliated with LSS or LSIA. LSS is affiliated with LSIA.