Gordon Graham here with Today鈥檚 Tip from Lexipol. Today鈥檚 Tip is for everyone in public safety. Today I鈥檇 like to offer some suggestions to help you plan for retirement.
Ideally, you should start your financial when your career begins. Realistically, few people start quite that early. The important thing to remember: Whether you have 10 years until retirement or 1 year, there are important steps you can take to figure out where you are now, and where you need to be.
No matter what stage of your career, there are some financial best practices to consider. First, know what savings options are available through your employer. If you have a 401k or defined benefit plan, get to know all about it. If your employer matches contributions, make sure you鈥檙e taking maximum advantage.
Second, look for alternative savings options, such as Roth IRAs, traditional IRAs or 鈥�529鈥� plans for educational savings. These accounts are good places to sock away cash while still providing more flexibility than your employer-based retirement account. There are other savings and investment options out there, so talk with a financial planner to help you choose what鈥檚 right for you.
Third, even if you enjoy your current job, think about your 鈥淧lan B.鈥� Burnout is common in public safety professions. You might decide to leave public safety before reaching full . And that鈥檚 OK! But you鈥檒l want to be financially prepared to make that kind of transition.
When you鈥檙e within five years of retirement, write out your retirement budget so you know what your spending capacity is each month. Take the time to 鈥渟tress test鈥� your budget by living on it for a few weeks to see if it鈥檚 realistic.
About 12 months out, finalize your retirement budget. Commit the numbers to pen and paper, but keep in mind that retirement means a change to your financial lifestyle.
Remember, these are your 鈥済olden years.鈥� Maximizing your financial future should be a priority long before your retirement date hits.
And that鈥檚 Today鈥檚 Tip from Lexipol. Gordon Graham signing off.
