Planning Notes | Monthly Tips for Your Financial Health | February 2022

Has Your Financial Situation Changed Due to COVID? Let’s Talk About How to Move Forward.

The pandemic’s effects can be felt in many ways, some bad (you lost your job or were forced into retirement), some good (your savings grew larger while you were stuck at home). Maybe you put off marriage or buying a home. If you aren’t sure how to move forward, let’s look at how we can help.

After almost two years, the pandemic has brought significant life changes clouding the path to a stable retirement for many individuals.

Americans are struggling with key decisions on investments and estate planning strategies. At the same time, many Millennials and Gen Xers are more worried about their retirement security than before COVID hit.

Add in significant changes in the employment market, with women being disproportionally affected than men and unprecedented numbers of workers taking part in the “great resignation” along with continued market volatility, and it’s no wonder retirement security feels unattainable for many.

But there is a way to move forward productively. Making some smart money moves right now can get you on solid footing for your retirement. Don’t know where to start? That’s where we can help.

Where to start depends on your personal goals and how the pandemic may have impacted your progress.

Here’s what to consider:

1. If you quit your job as part of the ‘Great Resignation.
You’ll need to make sure the career change doesn’t derail your retirement plan. Think twice before cashing out of your previous workplace retirement plan, which can cost you big in taxes and penalties. Once you’ve landed in your next role, opt into the workplace retirement plan as soon as you’re eligible, contributing at least enough to get an employer match — more if you can. And carefully consider the options for your old 401(k) or similar savings plan. If your new plan provides access to professional advice, take advantage of it. Or consider speaking to someone outside of the workplace who can provide you advice based on your specific situation.

2. If you put off milestones, such as buying a house or getting married during the pandemic.
It’s time to get back on track, but be careful not to overspend to make up for lost time. We can help look at your current financial picture to create a financial strategy that will help you reach both your short- and long-term goals or readjust them, as needed.

For newlywed (or soon-to-be-married) couples, we can help serve as a third party to help you set financial goals and navigate the sometimes tricky waters of combining — or not combining — your finances as you begin building a life together and planning for the future. We’ll also help you make sure you’re adequately protecting yourself from a variety of risks.

3. If you want advice but aren’t ready for an in-person meeting.
Today’s virtual environment provides us with a wonderful opportunity to redefine how you would like to interact with your financial planning team. We can more easily, and efficiently set up a time to discuss anything currently challenging you.

4. If stimulus checks and a less active social life have boosted your savings account.
You’ll want to make sure you’re reviewing and making progress on your financial goals. If you’ve paid down debt, built adequate emergency savings, and are maxing out your retirement savings, you may want to look at your financial wish list — maybe starting a business, buying a second home, or even retiring early.

Either way, you may also want to put your extra cash in savings into investments that match your goals. Unsure where to start? We can help you prioritize your goals and, if appropriate, help you allocate your investments.

5. If covid pushed you into retiring earlier than you had originally planned. We can help you stretch your nest egg as far as possible. We’ll work with you to determine your best withdrawal strategy, after factoring in the size of your retirement savings, the types of accounts you have (taxable or non-taxable), Social Security and other income sources, and your expenses. We can also talk to you about whether it makes sense to consider working part-time or using a guaranteed income product to ensure you never run out of money in retirement.

Remember, regardless of how you arrived at your current situation, taking the right steps now can help you feel confident that a financially secure retirement is in your future.