This spring I read the book The Smart Woman’s Guide to Planning for Retirement: How to Save for Your Future Today by Mary Hunt and want to pass on a few important excerpts:
Pages 162-164
“Here are six steps you can take to become more financially independent.
- Maintain good records. Be sure you have copies of all current assets, bank account numbers, safe deposit information, insurance beneficiary information, IRAs and other retirement account records, tax returns going back seven years, mutual funds statements, stocks and bonds, health insurance policies, homeowner’s and auto insurance policies, the lease or mortgage information for your home, wills, trusts, powers of attorney, and birth and marriage certificates. It is also a good idea to keep receipts of major appliances with information on warranties.
- Have your name on all bank accounts.
- Manage your own credit. Good credit is essential to any sort of financial independence. …Without good credit, it will be nearly impossible for you to borrow money to purchase a home or car, or even get a credit card, without assistance. …Good credit means more than just paying your bills on time. While that is a critical part of maintaining a good credit rating, you must also check your credit reports every year to make sure there are no inaccuracies. …The first step in managing your credit is to find out what’s in your three major credit reports. You have a legal right to review all of the information the three big credit bureaus have collected in your name. …Start by ordering your three free reports at AnnualCreditReport.com. …You may also receive your annual complimentary copies of your three credit reports by calling 877-322-8228 or by sending your request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. …Once you have a credit report in hand, look at this as you would a rap sheet. …Your job is to make sure the information is accurate. You will receive instructions with each credit report for how to dispute any inaccurate information.
- Assess your insurance needs and buy enough to protect yourself.
- Create wills…. Make sure you have a notarized original copy, a lawyer has a copy, and there is a copy in a safe deposit box. Review and update your will every five years or when you acquire significant new assets. …It is very important to state clearly whom you want to receive your property and possessions.
- Save, save, save! One reason for the high rate of poverty among older women is the lack of personal savings.”
Pages 178-179, 183
“There is no doubt that accumulating an appropriate amount of money for your retirement years is inescapably important. But growing a big nest egg should not be your only retirement goal. There really is more to retirement than just money.
These factors are equally important for a happy and satisfying life at any age but especially in retirement:
-good health
-relationships
-meaningful activities
…You can’t afford to wait until you turn seventy to begin making your retirement a time of joy and fulfillment. You can start living to your maximum potential right now, developing many areas in your life….
…As cliché as it may sound, retirement is not a destination; it’s a journey.”
Pages 186-187
“…three things you can do this week to get started.
- Have the talk. Set a time this week to have a conversation with your spouse (close friend or relative) about planning for retirement.
- Make a list. Think of all the things you would like to learn and do once you have more free time…. Pick one or two that you can start doing now….
- Create a plan. Review the six strategies…and make a simple plan for how and when you will implement them. Start with your money management system.”
Hunt, Mary. The Smart Woman’s Guide to Planning for Retirement. Revell, a division of Baker Publishing Group, 2013. Used by permission.