Data Privacy governs how data is collected, shared and used. When private data gets in the wrong hands, bad things can happen. Whether you are in the office or working from home, here are a few tips on how to keep your data private:
VARY YOUR PASSWORDS
Use unique, complex passwords on different sites and systems.
PROPERLY DESTROY UNWANTED DATA
Shred unwanted documents and thoroughly wipe devices before discarding them.
ENCRYPT SENSITIVE FILES
Use encryption when sharing or storing confidential data.
LOCK UP WHEN YOU LEAVE
Secure sensitive files and lock computer screens when you walk away.
Words are power, and each word has its own weight and energy. Words have inspired people to stand up for what they believe in or hang their head down in defeat. Therefore, choosing the right words to describe that which you want to manifest is very important.
For example, when speaking of aspirations for the future, there are those who use the words dreams and goals interchangeably. However, they ae distinctively different in definition and performance. A dream is boundless, fueled by your passion and imagination. However, it is akin to fantasy, with no immediate call to bring it to life. When someone tells me they dream of owning a sports car or starting their own business, I know most of the work to make that dream a reality hasn’t taken place and probably won’t for the foreseeable future.
A goal, on the other hand, is the mapwork to that dream, concrete and behavior-driven. When you have a goal, you have markers, measurements and steps to get to the destination. Setting the right goals, especially when it pertains to financial goals, can have a significant effect on how and when you achieve them. In fact, a guide to good goal-setting has long been to make it S.M.A.R.T.1:
Specific: if we are truly making a map towards our goals, telling ourselves to go in a general direction or for an undefined distance is most likely only going to get us lost. Steps towards our dreams have to be detailed and specific.
Measurable: When a goal is measurable, there is a way to track your progress to stay motivated or identify issues that may need problem-solving.
Attainable: It is admirable to be striving for something grand and lofty. However, it’s imperative that we have feasible goals that we can accomplish to keep us motivated and actually accomplish said goal.
Relevant: Having impressive goals are fine and dandy, but if they don’t move you closer to your overall goals or work against other goals you may have, it may be time to rethink them.
Time Bound: Once something has been stated as a goal, the stop watch has started. There is an expectation of completion, which is necessary to keep us moving forward towards that goal. It may not get completed in the expected timeframe, but just by having a deadline, we can stay accountable.
Based on this description of a S.M.A.R.T., you can see that there is a difference between, “I’m going to start saving money for a house,” and “I’m going to put 15% of my paycheck into a savings account specifically designated for my eventual down payment, and I should have enough saved after 3 years.” One expresses a desire while the other one lays out a concrete plan to achieve the goal.
If one seems to be fueling the other, how can a dream inhibit a goal? Well, one way is when your lifestyle fits with your dream rather than your goals. To achieve many financial goals like saving for retirement or buying a home, one needs to save and stick to a budget. However, if you fail to save and incrementally work towards the goals, it will take longer and longer to see results. Worse is if you choose to skip the incremental steps and live your dreamer’s lifestyle by using credit cards. The debt you accumulate will take you farther and farther from your goals and possible put you in an unfortunate and stressful predicament.
Sometimes when we haven’t developed a goal for a dream, it’s vagueness can work against an already established goal. Perhaps a good friend asks you to go into business with them. If you choose to pour funds into this new endeavor without any parameters, you may find yourself taking funds away from saving for retirement or depleting savings you already had. Of course, if you had outlined your goal on how to contribute to your friend’s business, with specific and timely parameters, the situation could be completely different.
Please understand that I’m not asking you to stop dreaming. In fact, quite the opposite. I happen wake up every day saying, “Dream Big! Work Hard! Laugh often!” I sign letters and thank you notes and end employee meetings with those very words. Dreaming is important.
So please know I want you to dream big and bold. At the same time, I want you to buckle down and create some S.M.A.R.T. goals to propel you closer to your dreams.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Planning for retirement amid changing market dynamics can be stressful, especially as retirement age approaches. Fortunately, there are a myriad of ways to prepare for it, even if you plan to retire early.
OPTIMIZE YOUR RETIREMENT INCOME
One of our top tips is to optimize your retirement income by setting yourself up with a diversified portfolio that offers a solid return. If you are in your twenties, there is a big opportunity to let compound interest work its magic. If you are in your thirties or forties, compound interest may not be as lucrative for you, but there are still plenty of ways to maximize your returns.
Here are some of the different options available to help plan for retirement:
SEP IRA – a self-employed retirement plan known as the Simplified Employee Pension (SEP) IRA requires employers to contribute 100% of the accounts' funds and provide equal benefits to all eligible employees.
401(k) – An individual retirement plan for which contributions are not tax-deductible, but withdrawals in retirement are tax-free.
Roth IRA – An individual retirement plan for which contributions are not tax-deductible, but withdrawals in retirement are tax-free.
Each option has its differences, so it is important to work with an advisor to identify which is best suited to your situation and your goals. There’s a lot that can go into your Life Plan and we are here to help.
Senior couple enjoying happy retirement lifestyle
DEVELOP A BUDGET AND SAVINGS PLAN
Budgeting can make a world of difference. If you haven’t already, establish an emergency fund. This will give you peace of mind and will help pay for any unexpected expenses that may arise. Once you’ve set that money aside, you can plan your monthly expenses, retirement contributions and more with the rest of the income you have.
As you develop this budget and savings plan to get you to your retirement goals, ask yourself the following questions:
What quality of life do I want to experience in retirement?
What medical expenses do I anticipate?
Do I plan on working during retirement?
Will I have a flow of income during retirement?
These are all important considerations and will help you develop an actionable plan to achieve the retirement lifestyle you dream of.
DETERMINE YOUR TAX BRACKET AND MINIMIZE YOUR TAXES
In retirement, taxes can eat into your available income, leaving you with less to live on. It's important to remember that taxes don't stop once you're retired. Our financial advisors are here to help guide you take steps throughout your working life to minimize your IRS obligations now and later.
The same basic tax brackets that apply to working taxpayers also apply to retirees. Determining your tax bracket in retirement is just like determining your tax bracket while you’re working – which is determined by your filing status and taxable income (income minus deductions).
Common sources of retirement income that are taxable include:
Distributions from traditional 401(k)s and IRAs
Investment income
A portion of your Social Security benefits (in some situations)
Some pension income
Income from work (full or part time)
INVEST TO ADD ADDITIONAL CASH FLOW IN RETIREMENT
If building wealth is your goal, the stock market or other investment strategies are common options. Investments such as annuities, real estate investment trusts (REITs) and income-producing equities can offer additional retirement income beyond Social Security, a pension, savings and other investments.
DETERMINE THE AMOUNT OF RISK THAT IS APPROPRIATE FOR YOU
It is important to keep in mind that all investments come with risk. If you are young, you can probably tolerate more risk. If you are in your thirties or forties, however, you might benefit from taking a lower risk approach. This is because people in their twenties have more time to correct and mitigate losses. A financial advisor can help you decide if you would like to take a low-risk, slow-and-steady approach, or guide you through a high-risk approach with the potential of yielding higher returns.
PAY OFF YOUR DEBTS
It’s important to pay off credit card debt and student loans as soon as possible. Systematically chipping away at debt now, can have a significant impact on your future debts and purchasing power.
A mortgage can be looked at as both a good debt and a bad debt, depending on your goals. Many people choose to rent a home to avoid being tied to a mortgage, and others use that property as a cash-positive asset. Depending on your goals, it’s important to discuss each of these approaches with a financial advisor so they can help guide you through something that will ultimately benefit you and your family.
MAXIMIZE YOUR SOCIAL SECURITY BENEFITS
Navigating Social Security income can be complicated, but there are several ways to maximize your social security benefits, including:
Work for 35 years or more
Earn as much as you can right up until full retirement age (or past it)
If you can, wait until you are 70 years old to claim – this can increase your benefit by 8% a year beyond your full retirement age
The goal is to maximize the income you will receive from Social Security, but the answer for you will depend on your age, current income, marital status, spouse’s income, and the age disparity between you and your spouse. With all the complexities to Social Security planning, there is no substitute for meeting with a trusted financial advisor so you can best navigate your life in retirement.
CONSIDER ESTABLISHING STREAMS OF PASSIVE INCOME
It's important to remember that there are multiple ways to set yourself up for prosperity during your golden years.
These include:
Investing in real estate
Investing in the stock market
Starting an ecommerce business
Writing books
Earning royalties of any kind
Investing in collectibles
Investing in gold and silver
In short, it's best to invest in as many financial assets as you possibly can in order to establish streams of passive income so that you are not solely reliant on one source for your earnings and returns.
ESTABLISH MULTIPLE STREAMS OF INCOME
You may want to consider continuing to work during retirement. This provides many people with a sense of satisfaction and purpose, AND you will be able to keep your benefits.
The earlier you establish multiple sources of income the better. Ideally, at least a few of these would be passive.
You deserve to be comfortable during retirement, and planning for this phase of life right now will likely help you achieve your goals, perhaps even surpass them. You have worked hard for most of your years around the sun, and you deserve to relax and enjoy every moment on your own terms during your golden years.
Why Choose Trilogy Financial
Planning your retirement strategy is important but not something to stress over. If you’ve already started saving, one of our certified financial planners can help you optimize your savings, investing and risk approach so you can live the retirement life you dream. However, if you haven’t started planning for retirement yet, there’s no better day than today!
Our Advisors will work with you to develop a deeper understanding of your alternatives, pinpoint practical needs and make plans for the care you and your family deserve. Please contact us to start your retirement planning today.
