Fellow GenXers: of all the fire drills weve experienced in our decades on Earth, it seems that many of us missed the retirementFIREmemo in our early adult years: Financial Independence, Retire Early.
Indeed, many members ofGen X now between the ages of 41 and 56 are still traveling the road to financial independence with retirement as a future destination, instead of a current reality. The opportunity to retire and say see ya to our bosses and employers has already passed us by. But its not too late to make a few smart money moves to help achieve financial security in retirement. Ill share them with you below.
But first, lets look at where weve been and where we are. When we started our careers and families, retirement seemed unattainable. We were slammed early in our adult years with the dot.com bubble, the Y2K scare and then the housing bubble. Financial panic defined our modus operandi.
To top it off, weve since evolved into the forgotten middle children, sandwiched between three living generations ahead of us (The Greatest Generation, The Silent Generation, and baby boomers) and three behind us (Millennials, GenZ and The Alpha Gen). We have the responsibility of caring for parents and children while trying to maintain our own fragile financial sanity and security.
Also see: How this woman went from six figures in debt and unemployed to financial independence
With around a decade or two before our first retirement milestone Medicare eligibility at 65 and the optimal milestone of Social Security income at 70 (the claiming age when monthly benefits are largest), our best course of action is FIRE drills. That means preparing ourselves for retirement readiness, better late than never.
By knowing where you stand, what you want and what you need to reach retirement readiness, you can achieve financial security. Heres how Im advising clients to do so:
Know where you stand.Your financial picture is best summarized by a Net Worth Statement. This statement lists all your assets (what you own) and liabilities (what you owe), with the difference between the two reflecting whats available after paying off debt.
Now that youve likely reached your high-earning years, consider these questions:
Know what you want.It is not easy detangling your identity from the familial and professional roles that demand your attention, time and money. As the sandwich generation caring for parents and children while holding middle- to senior management jobs, we have limited opportunities to determine what we want now, let alone plan for what we desire in the future.
Read: The FIRE movement confronts the 4% rule
Our confidence in retiring comfortably waivers with each decision that pulls at our financial resources and our human capital the ability to sustain the jobs that demand so much from us.
Many of us have taken a piecemeal approach to our personal finances, gathering money tips here and there from family members, co-workers and the media and financial professionals.
Most Americans still believe that financial planners are a luxury reserved only for the wealthy. According to a 2021 study by the Magnify Money site, only30% of Americans use a financial plannerto create and follow a dynamic financial plan anchored in their values and goals, reflective of key areas such as taxes, retirement, investments, insurance and estate planning.
Does this sound like you?
Know what you need.Fortunately, many Americans are living 30 years in retirement almost as long as our working careers. As such, we Gen Xers must modify our needs or adjust our strategy to support this newfound time.
Consider how much money you may need to support activities like travel and exploration. Dont forget about planning for rising health care costs or the possibility of long-term care, as well. According to the financial services firm Fidelity, a 65-year-old might need to earmark as much as $300,000 after taxes to cover themselves.
Finally, what have you done to prepare to leave wealth for the next generation? The Gallup polling firm recently reported that less than half of the U.S. adult population(46%) has a will. How about you?
Read: Im 52, wont live past 80 and have $1.6 million. I am tired of both the rat race and workplace politics. Should I retire?
Well likely need to revisit these drills until our retirement goals are realized. But by knowing where we stand, what we want and what well need to retire comfortably, we can reach our destination faster.
Lazetta Rainey BraxtonCertified Financial Planner Lazetta Rainey Braxton is co-CEO and co-founder of2050 Wealth Partnersand CEO and founder ofLazetta & Associates. She is passionate about amplifying diversity, inclusion, equality and belonging in the financial planning profession and does so through financial planning, public speaking, writing, consulting and coaching. She was named a 2021 Crains New York Business Notable Black Leader and Executive as well as one of the Top 10 of Investopedias 100 Top Financial Advisors in 2020 and 2021. In all her endeavors, she is on a mission to create wealth for the common good.
This article is reprinted by permission fromNextAvenue.org, 2021 Twin Cities Public Television, Inc. All rights reserved.
More from Next Avenue:
Read more from the original source:
FIRE drill: GenX, do you have what it takes to retire? - MarketWatch
- Financial Independence [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- The One-Page Guide to Financial Independence [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- 3 Ways to Achieve Financial Independence - wikiHow [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- Eight Secrets to Achieving Financial Independence [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- Success! - How to get Financial Independence and Help For Real [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- Financial Independence: The Final Stage of Money Management [Last Updated On: June 21st, 2016] [Originally Added On: June 21st, 2016]
- The Four Stages of Financial Independence - The Simple Dollar [Last Updated On: June 27th, 2016] [Originally Added On: June 27th, 2016]
- 21 Experts Chatting About Financial Independence | Cash ... [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- 21 Experts Chatting About Financial Independence | Cash ... [Last Updated On: July 5th, 2016] [Originally Added On: July 5th, 2016]
- Welcome - Reach Financial Independence [Last Updated On: July 8th, 2016] [Originally Added On: July 8th, 2016]
- Prepping 101: Financial Independence | Suburban Steader [Last Updated On: July 9th, 2016] [Originally Added On: July 9th, 2016]
- 7 Ways To Declare Financial Independence | Bankrate.com [Last Updated On: July 10th, 2016] [Originally Added On: July 10th, 2016]
- financial independence / early retirement - reddit [Last Updated On: July 12th, 2016] [Originally Added On: July 12th, 2016]
- Prepping 101: Financial Independence | Suburban Steader [Last Updated On: July 14th, 2016] [Originally Added On: July 14th, 2016]
- How to Declare Your Financial Independence - Next Avenue [Last Updated On: July 23rd, 2016] [Originally Added On: July 23rd, 2016]
- Financial Independence: The New and Improved Retirement [Last Updated On: July 27th, 2016] [Originally Added On: July 27th, 2016]
- FMO & IMO | Financial Independence Group, Inc [Last Updated On: July 29th, 2016] [Originally Added On: July 29th, 2016]
- 8 Secrets to Achieving Financial Independence [Last Updated On: October 4th, 2016] [Originally Added On: October 4th, 2016]
- Financial Independence Academy - Sign Up Today! [Last Updated On: November 12th, 2016] [Originally Added On: November 12th, 2016]
- COLUMN-Millennial parents still like to tap the Bank of Mom & Dad - Thomson Reuters Foundation [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Speaking of Women...Are We Really More Financially Independent Now? - Investopedia [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Millennial parents still like to tap the Bank of Mom & Dad - One America News Network (press release) [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- House Dems: Trump wants to put Wall Street first - The Hill [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- 3 insider tips for achieving financial independence | The Motley Fool ... - Motley Fool UK [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- The power of financial independence - KXAN.com [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Republicans Move on Financial Deregulation; Fed Finalizes Stress Test Guidance - Lexology (registration) [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Find out if you qualify for free tax preparation and financial advice - wtvr.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Getting To Know You Tuesday: Elliot Dole - Forbes [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- How to Prioritize Financial Goals When You Can't Do It All - Inside Higher Ed (blog) [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Millennial Parents Still Like to Tap the Bank of Mom & Dad - WealthManagement.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Days May Be Numbered for the Consumer Complaint Database - ConsumerReports.org [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Early Retirement & Financial Independence Community [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- How Much Financial Help Do You Expect From Your Parents in the Future? - New York Times [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Court Rejects Order Forcing Parents to Pay Tuition - Inside Higher Ed [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Congress could limit the Fed's independence and hurt the US economy - Washington Post [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Syrian refugee families achieve financial independence in Alliston - Simcoe.com [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Seattle Metropolitan Credit Union serves and empowers Latino consumers with Juntos Avanzamos program - CUinsight.com (press release) [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Consumers in cross-hairs with Dodd-Frank repeal - mySanAntonio.com [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Sheroes Founder Sairee Chahal ventures for Women's Financial Independence in India's sometimes Suffocating ... - Plunge Daily [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Surviving widowhood: Five tips to avoid financial hardship - Cincinnati.com [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Advocates say more women need financial independence: 'We really do need that extra leg up' - Globalnews.ca [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Q & A with Sr. Maureen Gallagher, setting up financial independence paths for women in Mexico - Global Sisters Report (blog) [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- The road to financial freedom - ABS-CBN News [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Independence Financial Partners - SPECIALIZING IN [Last Updated On: February 19th, 2017] [Originally Added On: February 19th, 2017]
- IDS celebrates 150 years of newswriting | Indiana Daily Student - Indiana Daily Student [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- International Financial Reporting Standards - Wikipedia [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- Retiring in their 30s. Yep, they're doing it. - Crain's Chicago Business [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- Opinion: Young adults need an easier path to financial independence - LSU Now [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- Successful Boomer Women Offer Financial Advice to Younger ... - Fox Business [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Another way to measure retirement readiness: Your 'Power Percentage' - USA TODAY [Last Updated On: February 25th, 2017] [Originally Added On: February 25th, 2017]
- 'Thousands' of cancer sufferers forced to borrow money from parents because of financial difficulties caused by illness - The Independent [Last Updated On: February 26th, 2017] [Originally Added On: February 26th, 2017]
- Column: Financially surviving widowhood - Cincinnati.com [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Oran Hall | Young cop seeks financial independence | Business ... - Jamaica Gleaner [Last Updated On: March 5th, 2017] [Originally Added On: March 5th, 2017]
- 'Game of Thrones' gave financial independence to Conleth Hill ... - Business Standard [Last Updated On: March 7th, 2017] [Originally Added On: March 7th, 2017]
- International Women's Day - Investing for financial independence - Simple Landlords Insurance (press release) (blog) [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- Game of Thrones gave financial independence to actor Conleth Hill - Bollywood Life [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- A Struggle Back to Financial Independence After a Brain Injury - The Good Men Project (blog) [Last Updated On: March 10th, 2017] [Originally Added On: March 10th, 2017]
- Financial Adviser | Oran Hall | Young cop seeks financial ... - Jamaica Gleaner [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- theFIREstarter - Financial Independence. Retire Early [Last Updated On: March 17th, 2017] [Originally Added On: March 17th, 2017]
- Linda Leitz: Women, divorce and money: Financial independence is best whenever possible - Colorado Springs Gazette [Last Updated On: March 19th, 2017] [Originally Added On: March 19th, 2017]
- Linda Leitz: Women, divorce and money: Financial independence is ... - Colorado Springs Gazette [Last Updated On: March 19th, 2017] [Originally Added On: March 19th, 2017]
- Italian millennials 'won't reach financial independence until age 50 ... - The Local Italy [Last Updated On: March 23rd, 2017] [Originally Added On: March 23rd, 2017]
- NBA ex-president seeks financial independence for judiciary - Guardian [Last Updated On: March 27th, 2017] [Originally Added On: March 27th, 2017]
- Priceless financial tips from 'Billionaire Cab Driver' money guru - WND.com [Last Updated On: March 29th, 2017] [Originally Added On: March 29th, 2017]
- NOEM: Fighting for financial independence - Rapid City Journal [Last Updated On: March 29th, 2017] [Originally Added On: March 29th, 2017]
- 5 Action Strategies for Financial Independence - Kiplinger - Kiplinger Personal Finance [Last Updated On: March 29th, 2017] [Originally Added On: March 29th, 2017]
- NOEM: Fighting for financial independence - Daily Republic [Last Updated On: March 31st, 2017] [Originally Added On: March 31st, 2017]
- AnuOluwapo Adelakun: Of Epic Twitter Comebacks & the Importance of Financial Independence for Women - Bella Naija [Last Updated On: April 3rd, 2017] [Originally Added On: April 3rd, 2017]
- The Struggle For Financial Independence - The Korea Times US [Last Updated On: April 3rd, 2017] [Originally Added On: April 3rd, 2017]
- Regulatory reform leads to financial independence - Argus Leader - Sioux Falls Argus Leader [Last Updated On: April 5th, 2017] [Originally Added On: April 5th, 2017]
- The Financial Lesson in a $1 Hot Dog - Barron's [Last Updated On: April 7th, 2017] [Originally Added On: April 7th, 2017]
- Five facts about financial independence - finder.com.au [Last Updated On: April 7th, 2017] [Originally Added On: April 7th, 2017]
- Income-producing assets pave the way to financial independence - Moneyweb.co.za [Last Updated On: April 10th, 2017] [Originally Added On: April 10th, 2017]
- 3 Things the Financial Independence Equation Teaches Us - Huffington Post [Last Updated On: April 14th, 2017] [Originally Added On: April 14th, 2017]
- Living a FI | A Geek's Guide to Financial Independence [Last Updated On: April 14th, 2017] [Originally Added On: April 14th, 2017]
- levels of financial independence - Radical Personal Finance [Last Updated On: April 14th, 2017] [Originally Added On: April 14th, 2017]
- A business owner's path to financial independence - BizTimes.com (Milwaukee) [Last Updated On: April 15th, 2017] [Originally Added On: April 15th, 2017]
- Independence Financial Group [Last Updated On: April 15th, 2017] [Originally Added On: April 15th, 2017]
- Calculating Your "Magic Number" -A Fool's Errand - Forbes [Last Updated On: April 17th, 2017] [Originally Added On: April 17th, 2017]
- How to win the endgame of financial independence - MoneySense - MoneySense [Last Updated On: April 17th, 2017] [Originally Added On: April 17th, 2017]