Developing saving as a habit earlier makes for a happier retirement


Editor’s note: This is the last in a three-part series on retirement by The News Outlet.

For some, retirement is close at hand. For others, it’s years away. Chris Davidson talks with one financial adviser, who gives us some tips about planning for the future.

As you plan your retirement, you can check all the financial websites, watch all the financial shows, meet with a money manager, but Dan Rossi recommends one simple habit – saving for both long and short term.

ROSSI: People that go through the pain, if you will, of developing those habits end up living much happier – mentally happier, physically happier – because of that and they lead a more successful life.

Rossi of FEIC Financial in Youngstown says a “rainy day” or “emergency” fund will protect you in several ways.

ROSSI: They create this habit of saving so they’re not breaking up their long-term investments and over a period of years, the long-term investments by not disturbing them will compound and sometimes make up for an unexpected loss.

If you’re closing in on retirement and haven’t met your financial goals, Rossi says cut back.

ROSSI: When they modify their spending habits, it is surprising how much money can be driven from reducing our lifestyle and directing money to pay down credit cards faster.

He says the money saved by paying off those credit cards, can go toward long-term savings.

We also need to think about the medical costs associated with aging.

CNBC reports unexpected medical expenses present the biggest risk to retirement plans. Rossi says you may want to consider a long-term care policy.

Rossi: If and when they need that type of care later in their life, it’s a lot easier to supplement the costs of nursing homes and/or assisted living facilities with having a base policy in place than it is to paying it all out of pocket.

This concludes our series on retirement tips. If you’d like additional information, please visit our website, I’m Chris Davidson.