No one knows what will happen in the future, so preparing for the unexpected is an important part of your financial and retirement plan. Financial confidence does not simply come from having a large amount of money saved up. Financial confidence comes from having a plan for both your goals and aspirations as well as the unexpected.
Our wealth advisors serving clients in Great Falls, Potomac, Reston and the surrounding Northern Virginia area have listed some tips to follow:
1. Understand Your Current Financial Situation
The first step to achieving financial confidence is to fully understand your current financial situtation. Write down your income, assets, expenses, and liabilities. When you understand where you’re spending the most money, it’ll become easier to manage your expenses by finding opportunities to cut and prioritize. This will also help you discover how much money you can save regularly and where to place that extra money.
2. Start a Portfolio
Once you’ve determined the amount of money you can save regularly, start developing a plan for your investment portfolio. You don’t need a large amount of money to start. You can start with whatever amount you’re comfortable with and increase your contribution amounts as you start earning more and saving more.
The key to building a portfolio is to use money you’ve specifically set aside for investing. After the initial investment, contribute regularly such as on a monthly schedule.
3. Take Full Advantage of Employer Retirement Tools
Don’t take your employer’s 401(k) program for granted. Depending on your employer’s plan, they may offer to match your contributions. Contributing to your 401(k) may seem like a dollar amount you cannot afford…but it is very important to do and to start early. And if possible, contribute to the maximum the plan will allow. Contributing the maximum will take advantage any matching contributions your employer may provide. If you don’t have a 401(k), start an individual retirement account (IRA).
4. Insure Against the Unexpected
Unexpected events often mean unforeseen expenses. Avoid financially burdening your family by getting disability, life, and long-term care insurance. With these financial tools in place, you’ll remain confident that you and your family are financially prepared for the unexpected.
Don’t wait until something happens before you start thinking about the future. You can achieve financial confidence at any age. Let our wealth management experts show you how.
AOG Wealth Management specializes in asset management, investment, and planning solutions. We offer services in Great Falls, Arlington, Georgetown, Washington DC, Maryland and the surrounding Northern Virginia area. Contact us to learn more about our services.