Does Your Retirement-Ship Feel Like it is Stuck in the Suez Canal?
Does thinking about your retirement goals remind you of the ship stuck in the Suez Canal?
The Suez Canal is a human-made waterway that runs across the Isthmus of Suez in northeastern Egypt. The Canal was completed in 1869 connecting the Mediterranean and the Red Sea. It is the shortest maritime route to Asia from Europe, and it is one of the world's most used shipping lanes.March 23rd, 2021, a container ship larger than the Empire State Building named the Ever Given got stuck in the Suez Canal. The Ever Given is one of the largest ships in the world at 400 meters long with the ability to hold over 20,000 shipping containers. Experts were saying it could take up to a month to free the ship, but after 6 days of trying to free the ship over a dozen tugboats, dredgers, engineers, and the tides finally freed the massive ship.Around 12% of all global trade, 1,000,000 barrels of oil, and 8% of liquefied natural gas pass through the canal a day. Since the Suez such an important shipping lane for global trade, the blockage caused an estimated $9.6 billion a day halt in trade.No one knows yet exactly how the Even Given got stuck, but experts believe it has to do with strong winds and sandstorms. Some suggest that technical or "human errors" are to blame for the ship getting stuck and costing Egypt around $15 million a day in revenue loss.Do your retirement goals feel like a massive container ship? Are you a captain that's stuck? Here is a list of must-dos to assist you in unsticking your retirement-ship for smooth sailing ahead.
Start by Unsticking Your Thinking
Those in their 40s and 50s need to look at maximizing all they can do to prepared for retirement, especially as life expectancy grows longer. You should aim to maintain a reasonable lifestyle for two or three decades after you officially retire. This of course takes saving and planning.
Next Steps
The first step is maximizing the contributions you make to retirement accounts like a 401 (k). The annual contribution limit is $19,500, but if you reach 50 there's an additional catch-up contribution of $6,500.The next thing you must do is understand your spending. This is key in determining when you can retire. Any plan you make is not going to work if you don't understand how much you can spend. When you evaluate your spending, you understand how much you need and how much you can contribute to other goals.Knowing the rules of Social Security makes an impact as well. The age you begin claiming Social Security determines your benefit income for the rest of your life. You can permanently reduce your monthly benefit if you start collecting before full retirement age. Know the rules so you're not passing up thousands of dollars of benefits.
Find a Financial Advisor
Successful financial planning is all about following wise investment strategies and following a plan that is made just for you. Your financial plan should be tied to your long-term goals, but short-term events need to also be addressed. A financial advisor can help you make strong, strategic investment decisions and help you from running your retirement-ship aground.To discuss your retirement plan or to get one set up, talk to the financial professionals here at NEST Financial. Email info@nestfinancial.net to set up an introductory call. We're here to make sure your working towards your goals and won't need tugboats to get you out.Find us on:LinkedIn Facebook Yelp Twitter