Are you in a better financial position that you think?

Many times, advisors (RK included) discuss how 401(k) participants can save more, plan better, or spend less.  Without meeting you one-on-one, an advisor may only be aware of your retirement plan balance and unaware of other assets you have and what you are saving over time.

Below are four areas to help you gauge if you are on the right track when it comes to saving for retirement and investing for the future:

1. You have emergency savings

According to a 2017 study, 39% of American families have less than $1,000 saved for emergencies. 39% is a small percentage, and it goes to show how ill-prepared many are for life’s “what ifs.”  If you have an emergency fund of your own, you’re in a good spot to cover cash flow issues in lean times and ward off potential financial problems.

2. You’re enjoying the journey to success

You want to chart a path toward financial prosperity for sure, but it’s also important to enjoy the ride.  Many spend years telling themselves they cannot afford a simple vacation.  When they finally let go and take their family to the beach, they realized they could enjoy life while working.  If you can stop to smell the roses as you work toward retirement goals, you may be one step ahead of the game.

3. Your personal life isn’t in shambles

Money is important, but not if the pursuit of money ruins your marriage or relationships.  Some people put their jobs first and think of their relationships later.  Remember to nurture your relationships as you grow your financial nest egg.

4. You’re optimistic about the future

Last but not least, don’t forget to keep your head up. During the 2008 and 2020 financial crises, many retirement accounts lost value.  We encouraged participants to focus on the positives – including the fact that account balances increased nearly as quickly as they fell.  If you focus on the positives, even the worst-case scenario can work out in your favor.  Keep your head up and maintain a positive attitude.

If any of the above causes worry that your retirement goals may not be on the right track, please contact your RK advisor.  We’re here to help.

Source: Inc.com