Since I spend most of my day helping people prepare for success in their finances, you would probably expect me to say that financial resources are most critical to a successful retirement. It’s true that finances are inarguably important but financial accomplishments alone don’t ensure a successful retirement.
Recently, a client who was purchasing a new home told us that a friend had advised him to get a home equity line of credit (HELOC) when he bought the house, even if he didn’t need it. He wasn’t sure he fully understood the reasons his friend gave for doing this, and since it’s a question we’ve heard before, we decided to address it on the blog.
In general, women bear greater financial risk than men. Most married women bear more risk than their husbands because they tend to be younger and have a longer life expectancy. And since women tend to earn less money than men, there is greater pressure to make fewer assets cover higher costs, particularly for single women.
Many of the young professionals we serve identify paying for their children’s college education as a top tier goal. Knowing how expensive that can be, the goal looms so large in their minds that they are inclined to begin saving for their children’s college expenses over contributing enough towards their own retirement savings goals.
Believe me, we get it. After yesterday’s Brexit referendum and its startling outcome, it’s hard to view today’s news without feeling your stomach twist over what in the world is going on. Whenever the markets scream bloody murder, your instincts deliver a sense of unrest ranging from discontent to desperation.