Banknotes

There’s no getting around it: Saving is hard. Right now, there are probably 100 more exciting things you would like to do with your money than save it. While retirement and other long-term goals may seem like distant dreams, time flies when you are having fun! And the longer you wait, the more challenging it becomes to realize the freedom you envision for yourself in retirement.

Congress’s well-intentioned plan to bolster retirements for working Americans – the Setting Every Community Up for Retirement Enhancement (SECURE) Act – will come with its own set of wrinkles and challenges for defined-contribution plan sponsors (e.g., 403[b], 401[k], etc, which I’ll collectively refer to as “401[k] plans,” for the purposes of this article).

I have to be brief and selective, but here are a few topics to consider carefully if you are tasked with administering the plan for your co-workers or employees.

With traditional pension plans all but gone, many workers have been left to rely on a 401(k) plan as their primary source of income in retirement. There’s just one problem with that: Multiple studies indicate that approximately 40 million Americans do not have a workplace retirement plan.

The Setting Every Community Up for Retirement (SECURE) ACT – a topic that Jeff Collins introduced in this space when it was only proposed legislation – was recently passed by Congress (with broad bipartisan support, no less), marking a significant victory for anyone actively planning for their non-working years. Put simply, the Act is the kind of retirement reform that may come along only once in a generation.

Will 2020 be the year? If so, congratulations are in order! You are about to embark on an exciting and rewarding chapter of your life – one you've been working toward, intentionally or not, for decades. Whether your plan is to retire cold-turkey or transition more slowly, there are a few things to keep in mind that will help make the process easier, less stressful, and, ultimately, more enjoyable.

Pensions are among the rarest of rarities and will never return. The future of Social Security is stressed, and the ultimate destination of our healthcare system is uncertain to say the least.

What’s a person to do? The answer is simple: Begin planning for retirement in earnest and implement your plan – the sooner the better. Here are three checklists, compiled by decade, that will help guide your planning and keep you heading in the right direction.

One of the best things you can do for yourself early in your adult life is start planning your financial future. Some of you are probably thinking you’ve got plenty of time to work on that, but in this instance, time can be your worst enemy. A great starting point is developing a relationship with a trustworthy, knowledgeable, professional financial advisor – someone with whom you’ll develop a financial map for your future, who’ll help you get a feel for the road, and who’ll be there to guide you through any detours you encounter along your way.

Congratulations! Your estate plan is set, your beneficiaries are named ... you’re done, right? Not so fast. In the oft-quoted words of the Greek philosopher, Heraclitus: “Change is the only constant in life.”

If you’ve had a big life change, it is a good time to review your estate planning documents, to ensure your plan continues to reflect your wishes. It also makes sense to review life insurance or investment accounts where a list of beneficiaries has been made. Here are a few life events that could trigger a review of your documents.

Ask someone why they’re happily anticipating retirement, and you’ll likely hear plans about unlimited time for family, golf, travel, reading, biking, yoga, the health club, morning coffee, evening cocktails, freedom from stress, and much more. While these happy, idyllic scenarios unfold for some, they don’t for everyone.

Estate planning is defined as the process by which an individual plans for the acquisition, use, conservation, and disposition of property or wealth. The National Network of Estate Planning Attorneys offers a clearer explanation:

I want to control my property while I am alive and well, care for myself and my loved ones if I become disabled, and be able to give what I have to whom I want, the way I want, when I want, and, if I can, I want to save every last tax dollar, attorney fee, and court cost possible.