What tops most New Year’s resolutions lists? You guessed it. Greater health and happiness. But what most Americans don’t consider is that financial health can be equally, if not more important to overall happiness than other resolutions, such as starting a new diet or joining a gym.
While saving money is one of the top five New Year’s resolutions, it is also in the top five for most commonly failed. So how can savers commit to a more financially sound future and stick to it? Here are some top tips for achieving greater financial happiness.
• Embrace uncertainty. When it comes to markets, the only known is the unknown. And many experts believe that 2020 could be a particularly unpredictable year. In fact, research from Lincoln Financial Group shows that 76 percent of investors feel the upcoming presidential election will affect the market. Taking steps to protect your finances and retirement plan can help you feel less anxious and more empowered in uncertain times.
• Protect your income. Lincoln Financial’s research also shows that eighty-two percent of pre-retirees are rightfully concerned about what will happen to their investments if the market drops. For this reason, many advisors suggest diversifying your portfolio to include an annuity with optional income benefits.
“An annuity can provide a source of lifetime income that’s protected from market losses, and a better ability to create a retirement budget — all of which can make for a less stressful and happier overall retirement,” says John Kennedy, who leads sales for retirement solutions at Lincoln Financial.
• Build a new relationship… with a financial professional that is. A trusted financial professional will look at your financial situation holistically to help you determine whether you are on track or need to rebalance your accounts, help you employ tax-saving strategies, answer your toughest questions and help you strengthen your own financial know-how. Most importantly, building a relationship with a financial professional means bringing more predictability to your future in an unpredictable market.
Setting goals? Take the retirement questionnaire at LFG.com to find out what you need to do to reach your goals.
As you head into the new year, be sure to factor financial health and happiness into the new-year-new-you equation. With a few smart strategies, you can feel more confident about a financially sound future and retirement, come what may.
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