Designing & Building Your Financial House

When we’re young, we start building a financial house that will hopefully serve us well into our 80s and 90s. But how can you make sure your designing and building a financial house that will stand for a lifetime?

Let’s start with your foundation. A rock-solid foundation provides support for your house, making sure it can stand and not immediately fall to the ground. The foundation of your financial house is similar; it serves to support your retirement. The types of products included in your financial foundation typically generate guaranteed income, products such as fixed annuities, fixed indexed annuities, savings accounts, short-term government bonds and more.

The walls of your financial house are other products and investments that allow for growth. The walls may include investments in the stock market, bonds or real estate. Finally, the roof covers the whole house – and the roof is where you keep your investments that are riskiest but also have the most potential for growth. Your roof might include things like stocks, junk bonds, precious metals, and other investments.

Designing a solid financial house starts with figuring out what percentage of your assets should be in the foundation, walls and roof. Those numbers can change over time, particularly as you get closer to retirement or as your life changes. Your financial advisor can help you determine not only how much to put in each area, but also make sure any remodels of your financial house go smoothly as you get closer to retirement.

Discover the better side of retirement planning.

Is your financial house in order? At Carlson Financial, we help answer all your retirement questions. Call us today at 844-CARLSON or CLICK HERE to schedule your complimentary review.