2020 was more than just a health crisis, it had ripple effects on nearly every aspect of our lives, including our long-term financial plans.
Research from Lincoln Financial Group shows that personal finance concerns have intensified over the past year. Nearly half of Americans say they are preparing for the 2020 election’s impact on their investments and retirement accounts, and a vast majority have expressed a need for financial education to help them be better prepared for the future. As uncertainty continues amidst the ongoing COVID-19 pandemic, Americans’ hopes of a comfortable retirement are at risk.
“If you are nearing your retirement years, the events of this past year may have been especially concerning, and if you are rethinking your retirement plans altogether in light of 2020, you’re not alone,” says John Kennedy, head of Retirement Solutions Distribution at Lincoln Financial Group. “The good news is that with some smart steps and proper planning, you can set yourself up to feel more in control of your finances in the year ahead and for years to come.”
Kennedy offers the following tips to pandemic-proof and own your financial outcome in 2021:
- Talk with a financial professional. If you’re not already, consider talking to a financial professional about your goals, roadblocks and concerns, especially given today’s circumstances. Lincoln’s research shows that nearly a third of Americans agree that now is a good time to talk with one. They are well-positioned to help you consider a broad range of solutions that best address your individual needs and situation.
- Protect your income. Your advisor may suggest diversifying your portfolio to include an annuity, which is a financial product that can provide you with protected income in retirement. Solutions like an annuity can help you feel better prepared to navigate volatility, protect the retirement savings you’ve worked hard for, as well as provide a legacy for loved ones.
“With annuities, you have options for both protected growth and income that can help you feel more secure that you can maintain your lifestyle in a down market,” added Kennedy.
- Stay the course. New research shows that an unpredictable market concerns more people than actual investment losses. But while market twists and turns may take you for a ride, it’s important to resist the temptation to jump off altogether. By proofing your portfolio to weather market ups and downs, you can guard against market losses, while keeping your money invested for growth.
For more resources and tips, visit www.lfg.com.
As you look ahead to a new year, it can be empowering to shift focus onto matters within your control. Proper financial planning, along with strategies that offer protection and opportunities for growth, can help you feel more secure as you work toward your investment goals.