One Simple Way to Create a More Secure Future


One Simple Way to Create a More Secure Future

Posted by Infinite Wealth Advisors, LLC
7 years ago | June 26, 2017

Group of Senior Retirement Discussion Meet up ConceptIf you’re following our blogs, you’ve learned a lot about saving for your future. For example, you know that gradually increasing your retirement plan contributions each year is a wise move, and you also know that maxing out your contributions helps you to enjoy the full tax advantages available to you.

But what if there was one more, very simple thing, that you could do during your working years that would help you plan for a more secure retirement?

At some point, or even several times over the years, you might receive a windfall of cash. Perhaps it’s a tax refund, or a work bonus, or even an inheritance. We’ve even heard of people coming home from Vegas a bit richer than they expected! It’s tempting to splurge on a vacation, or a kitchen remodel, or some other treat. If you make the decision to invest that money in your future, it could pay off quite handsomely down the road. Consider these options if you ever find yourself in the lucky position of deciding what to do with unexpected money.

Pay off debts. Okay, this is the least “fun” thing you can do with a windfall, but you know what is a whole lot of fun? Living debt-free in retirement (and now, for that matter). Plus, the more money you save on interest over the years, the more you can put toward retirement savings (and some fun, too).

Establish an emergency fund. Let’s say your debt is already very manageable, or you’ve been careful to stay out of debt in the first place. Setting up a rainy day fund can help you stay out of debt, because now you won’t need to borrow cash in the event of an emergency.

Use it to advance your career. Is there a promotion just out of your reach at work? Sometimes, additional training, certifications, or an advanced degree makes the difference. Invest extra money in yourself now, and it could pay off in the form of a raise that lasts for the rest of your career.

Donate to charity. This move won’t exactly bring you extra cash in the future, but it can lower your income tax bill if you itemize your return.

Stash the money in your retirement plan. If you aren’t already contributing the maximum allowable amount to your retirement plan, use extra cash to bump up your contribution this year. Plus, you can earn a better income tax deduction in the spring.

Are you facing decisions relating to an unexpected windfall? Or maybe you just need help planning for your future in general? Either way, give us a call, and we’ll help you sort through your options and establish a plan to achieve your goals.

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