Between now and the end of this year, I want to give you some pointers to think about to improve your retirement planning. This information is provided with couples and families in mind but the single person can cogitate on these points for future implementation. Each point is a behavior that is designed to help you, the reader, improve your chances of a successful retirement. The earlier you adopt these points the more impact they will have. I hope you find each behavior discussed of value to changing your destiny.
Tip #1 Always combine finances
For some, this will instantly turn you off. Our society has become a society of mine and yours. Even in the marriage relationship, many couples keep separate finances. The reason for this is simple. It is a trust issue. I grew up watching my parents set the example of earned income belonged to the person who earned it. Even to this day fifty-four years later my parents continue to do a “his and hers” budget. As my parents are well into their retirement years, they are on the low side of the statistics highlighted in Appendix B (of my upcoming release 10 Ways to Improve Your Retirement Planning). Furthermore, I know married couples who combined their finances from the very beginning of their marriages and twenty some years later they have accomplished more together than they ever would have individually. Think about the three factors associated with solid financial planning, which are time, amount, and rate of return. When you combine your financial resources from the start you give your resources all of the advantages associated with these three factors.
As you increase the years of a stable marriage, you keep more assets together for a longer period of time with a greater degree of return on investment. So from a purely financial point of view, this behavior makes the most amount of sense. However, there is residual gain from adopting this behavior as part of the establishing stage of life. This behavior fosters communication, accountability, and trust. It fosters communication because when a couple becomes dependent upon a collective accumulation of resources, each person understands and respects how his or her individual actions impact the greater good of the couple. When the financial resources are collective, you cannot hide a large outlay of cash. Thus if one person wants to make a large purchase, it will be impossible to hide that transaction from the other. Therefore, each person is encouraged to discuss his or her individual desire to make a purchase. A couple who respects each other’s opinion and concerns will make the right decision.
In retirement planning, this communication is critical to ensuring that the couple is focused on achieving the best results for each other collectively. In discussing large purchases, the couple is developing accountability. They are essentially saying, “I will not put in jeopardy our financial future to acquire possession for myself.” Retirement planning requires this level of accountability. Any money decision must become a jointly agreed upon decision. You will likely be stronger n some areas of money management that your spouse is not and vice versa. Play to your strengths but always be accountable. For example, my wife is stronger at the household budget and I am stronger at investing. Therefore she pays the bills and I make the investment decisions. This has resulted in a high degree of trust with each other. I work hard to ensure that our investments achieve or exceed our growth targets. She manages the finances of the household and keeps expenses down.
Combining financial resources will improve your retirement planning because you will have a greater level of communication about your hopes, desires, and needs in retirement. It will improve your retirement planning because you will have more accountability which produces a greater level of trust. If you fail to combine your finances there will always be an air of suspicion about whether your spouse has the same sustainable targets as you. Also, combined resources will result in a greater amount of resources working together to accomplish the same targets. This reality will continue to be realized as you build these ten behaviors into your daily life. So for these reasons, better communication, more assets working harder for you over a longer period of time, and higher levels of accountability and trust, you need to begin to develop the behavior of combining all finances.
I have written about developing strategic goals in my exclusive eBook Strategic Goals: The DNA of Personal Success, which is available at Amazon’s Kindle Store. You can get the app to download this book on any device. If you want to take your retirement planning to the next level, pick up a copy of Strategic Goals. If you want to work with a Strategic Life Coach, contact me by visiting my website (http://kenrupert.com) and using the contact form to request more information.