5 tips to secure your financial future
Pride Month is here and it’s a time to both celebrate advances toward equality and raise awareness of the challenges many LGBTQ people still face.
When you think of barriers faced by the LGBTQ community, Retirement planning may not be the first thing you think of.
According to a 2019 survey by TD Bank, only half of millennial LGBTQ workers describe their financial situation as positive, while the older Generation Z and baby boomers are only slightly more optimistic at 59%.
Many LGBTQ Americans face a pension gap, which means their savings and planning for their golden years is not what they need to have a comfortable retirement.
Here are five steps you can take so that you have a safety net for the leap into retirement.
1. Dealing with debt
In summary, the LGBTQ community reports that they are dealing with higher levels of debt than the rest of the population – 39% report a problem, compared with 33% for everyone else, according to a 2017 Prudential Financial Report.
The report added that 4 in 5 LGBTQ households report having high levels of debt, making household finances difficult to manage.
The 2019 TD survey shows that 51% of millennials reported that student loan debt forced them to put off saving for retirement.
When credit card debt is weighing you down, consider the following: low interest debt consolidation loan. Combining your balances into a single payment will make it easier for you to manage your debt and repay it faster.
With that weight, you can work on your other financial priorities.
2. Start planning early
Don’t hesitate to fund an individual retirement account (IRA) just because you think you don’t have enough money to make it worthwhile.
Investing just a few dollars for each paycheck will get you used to it – and you can increase your contributions when you can set aside more cash.
If you’re not sure where to start, touch the base with a professional financial advisor to get you started.
3. Protect your health and financial security
One study shows that LGBTQ people face both discrimination and barriers in health care that prevent them from receiving the same level of care as everyone else.
According to a 2018 report by the Kaiser Family Foundation, this leads to a lower quality of life and poorer health outcomes.
In the meantime, an outstanding medical bill can turn your financial situation upside down.
To protect your finances and your health, sign up for cheap health insurance and make sure you are protected in case you ever need medical attention.
4. Build your wealth
Now that you have a solid foundation in place with a plan for dealing with your debt and saving for retirement, it is time to start thinking about your financial present.
LGBTQ people often do not have the same access to support that others can count on. A poll for WNYC radio found that 35% of queer people said they could count on financial support from family and friends before they got out, but that number dropped to 20% after they came out.
However, there are still many ways to advance financially.
Buying a home is a good investment in keeping your family safe and, along with your retirement account, can be an important part of your retirement plan. Mortgage rates at an all-time low currently, but should increase by the end of the year. If you can afford it, now is the perfect time to take a big step.
Another great option is building an investment portfolio. And you don’t need thousands of dollars to get started. In fact, there is an app that lets you Invest your “change”. In no time you can turn your pennies into a diversified portfolio.
5. Prepare your beneficiaries for success
Regardless of whether you have children or want to leave something to your dream family, it is important that all of your assets go to the right people.
Start by making a will to make sure your estate gets into the right hands.
You should also think about tuning in Life insurance policy – especially if you own a home. This ensures that your family is financially secure when you are away.
Other ways to save money or increase your budget
All of the preparation can seem overwhelming, but a solid strategy will help you close the retirement gap.
And if you need more cash to buy yourself a little extra pillow, there are a couple of options.
Reduce your insurance premiums. When was the last time you looked for a better price on your car insurance? If it’s been a while, it could cost you an extra $ 1,000 each year. Look around to make sure you can pay the best possible price. And while you’re at it, use the same technique to Save hundreds on health insurance, also.
Save big without clipping coupons. Even if you have reduced your budget to the bare essentials, you have to stock up on the bare essentials here and there. When that time comes Use a free browser extension scoured the websites for the best prices and coupons to make sure you always get the lowest prices.
Mind your student debt. If student loan payments are consuming part of your monthly budget, consider refinancing your loan at a better price. Not only could it save you money every month, but it could also help you pay off your debts years sooner.