Money / Financial Planning
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With rapid inflation, a possible interest rate hike in the cards for 2022, and the omicron variant of COVID-19 spreading rapidly, January 2022 looks to bring about as much fiscal uncertainty as March 2020 did.
See: Where Can You Get a Free COVID-19 Test?
Find: Omicron Update: COVID Variant Spread Triggers Thousands of Flight Cancellations – Should You Ask For a Refund?
But just because the future of work, the economy, or our collective health is riddled with unknown factors doesn’t mean we should abandon any financial planning or goals for 2022. In fact, it’s even more important to maintain control over what we can during uncertain times, experts say. Such controllable factors often include spending and saving habits.
If you’re among the 68% of Americans making financial resolutions for the new year, it’s a good time to consider the following factors and how they might have been — or could be in the future — affected by the pandemic.
Retirement Planning: See What it Would Take to Retire Early
If you’re among the Americans facing burn-out at your job or in your career, or you just realized you don’t want to continue working into your 60s or 70s – or even your 50s – it’s time to re-evaluate your retirement goals.
Consider how much more you’d need to save to have accrued roughly 90% of your current salary by retirement age – whatever you’d like that age to be. That’s how much experts say you’ll realistically need to retire comfortably.
Then, consider your options for achieving that goal. Do you need to sacrifice dinners out to put more money into savings? Can you get a second job or a side gig and put all the money into an IRA? If you’re in your 20s or 30s, perhaps you can afford to invest more aggressively for greater returns.
Related: Under 40? Adjust Your Retirement Savings Rate to Properly Cover What Social Security Won’t
Weigh Larger Purchases Now Against Saving for the Future
With possible quarantines or another remote work stint looming, you may be considering home renovations, the addition of a swimming pool, or even a move to a home that better suits your needs. Evaluate these short-term goals against your long-term goals such as retirement. A financial advisor can help you make sure you’re not jeopardizing your future for the sake of extra comforts today — and perhaps guide you toward choices that will bring you happiness now as well as in the future.
“You really have to rank what’s most important to you,” Winnie Sun, managing director of …….