You have done all the right things – worked hard, and saved money, hoping to have a fulfilling retirement. However, as life happens, unexpected events can quickly throw off your retirement plans. Financial Consultants Group a financial advisor in Cumming, GA, listed four key events that could potentially ruin your retirement, and how to survive them.
Economic Downturn or Job Loss
The Great Depression of 1929 wiped out the life savings of millions of Americans in just a blink of an eye. More recently, the Coronavirus pandemic triggered a period of recession that led to a massive unemployment crisis.
Economic disasters like these, or even the loss of a stable job can throw a wrench in one's retirement plan. Moreover, extended job loss can quickly deplete your retirement nest egg just to survive, much less maintain a standard of living.
The rapid turn of events in countries can cause the stock market to plummet and erase all hard-earned savings and investment gains planned for funding one’s retirement.
Divorce
The upfront legal costs of divorces are financially crippling enough as it is. Turns out, its long-term effects are much worse. With a divided household, each of the ex-spouses is now responsible for their own expenses.
This means that a once lone source of income for the family will now be split to cover the expenses of two separate residences – food, utilities, rent, and the like. The result – the children and each parent could suffer a lower standard of living following a divorce, making it difficult to prioritize retirement planning.
Major Emergencies
Insurance can cover house fires, accidents, critical illnesses, and other major life emergencies. However, the aftermath of these emergencies can also force you to use up a portion of your emergency funds, or worse, your retirement funds themselves.
When you use your retirement funds for emergencies, you risk large penalties, and potentially years of lost income.
Health emergencies are the biggest culprit of all. Studies found that over 60% of bankruptcies are linked to medical events such as heart attacks, strokes, or cancers.
Going Back to School
Whether you are looking to finish college or pursue an advanced degree, both situations have a considerable impact on your future finances and retirement savings.
Going back to school could mean letting go of your active source of income or working part-time. It could also mean taking on hefty student loans. All of these can put your retirement plan on hold until you finish your education.
If you are considering going back to school, consider its monetary impact, and make sure to pursue a degree that will help you advance your career, and land a higher-paying job. Also, as much as possible, avoid student loans.
Conclusion
While the events outlined above are beyond anyone’s control investors must proactively take precautions to protect their retirement savings and minimize the impact of life’s curveballs.
The key is to find a reliable financial consultant who will provide you with unbiased guidance while adhering to the fiduciary standard. They will help you build a customized plan to protect your savings from events that could ruin your chances of having a fulfilling retirement.
About Financial Consultants Group
Founded in 1996, and located 6 minutes from Cumming Fairgrounds, Financial Consultants Group is an independent full-service financial planning and investment management firm known for making clients understand their unique financial situation so they can plan better for the future.
The financial planning company is composed of experienced, trained, and certified experts to help clients overcome family crises by developing customized plans to help them make informed decisions about all things that may affect their financial present and future.
Proudly serving Forsyth County, Financial Consultants Group is located at 1080 Sanders Rd Suite 300, Cumming, GA 30041, United States.
