In an article published on Forbes, Gregory Ostrovsky, a financial planning expert and member of the Forbes Financial Council, presented 6 ways that can help individuals simplify their finances before retirement.
Ostrovsky explains that good preparation now may avoid many financial challenges later.
1- Automate payments and savings for financial stability
Automating payments is one of the most important ways to avoid forgetfulness and save effort. Ostrovsky advises creating an automatic system to transfer part of your income to savings and investment accounts. “When money is transferred automatically, you do not feel like losing it, and this helps build future savings effortlessly,” he says.
2- Pay off debts to reduce financial burdens in retirement
Ostrovsky emphasizes the need to pay off debt before retirement to reduce future expenses. “Every dollar you pay off debt equals a return of the interest you would have paid, which helps free up your money to invest in retirement plans,” he says.
3- Work with a financial advisor to achieve personal goals
Ostrovsky recommends working with a qualified financial advisor who can help coordinate all financial aspects, from debt to investments. “A good financial advisor can map out a clear roadmap toward achieving your long-term goals and help you monitor your progress on an ongoing basis,” he said.
4- Setting clear, long-term goals for retirement
Setting specific goals for retirement is crucial, and Ostrovsky suggests creating careful financial plans that include the amount required in retirement and expected monthly expenses, which helps create a clear vision for achieving financial stability.
5- Ignore the financial noise and focus on reliable sources
Relying on unreliable sources can confuse financial decision-making. “You should identify sources of information you trust, and reach out to a financial advisor to carefully evaluate financial opportunities,” Ostrovsky says.
6- Prepare early for retirement to avoid financial anxiety
Ostrovsky emphasizes that planning ahead is key to avoiding financial anxiety in the future. He advises preparing by developing a comprehensive plan that takes into account travel, family activities, and other matters. “Planning can help you enjoy a worry-free retirement,” he says.
With these six ways, individuals can simplify their financial lives and better prepare for retirement, according to Forbes and Ostrovsky’s recommendations.
