Advisor discusses financial goals and retirement

Darian Graivshark
Debby Anselmo

Do you want to leave a legacy, not outlive your money, or age with dignity and independence?

On February 18, Debby Anselmo, Financial Advisor of Wealth Management Group, held a meeting for individuals interested in starting a business, retiring, or managing money.

If you want to leave a legacy when considering retirement, your best bet may be looking into life insurance, investing in tax free bonds, or annuities.

"If you don't want to outlive your money, then focus on getting out of debt," Anselmo said. "If you make one dollar, you should spend a quarter on taxes, a quarter on food/clothing/transportation, and another quarter on electricity/sewage/water, thus, only being left with a quarter. That leftover twenty-five cents should be split between fifteen percent on retirement, five percent on emergencies, and another five percent on vacations or spending money."

There is a financial pyramid that many of us start upside down on. Working our way upward, we should begin with spending our money on automobile insurance, home insurance, health and disability insurance, to name a few. Then, we move up toward emergency money, which should usually be three to six months worth of a salary. Next, focus on retirement savings or saving for a child's education. Finally, the last decision should be made on discretionary income, or money that is spent on something like a new purse, vacations, or shoes.

"Many of us begin at the top of the pyramid, because these are things that we find easily accessible," Anselmo said. "We also think that we still have plenty of time to invest in these other areas. There is always time, but in the end, it's better to begin earlier."

A few ways to save for retirement include Roth's, 401k, Social Security, Tax Free Bonds, and Savings. Roth's were invented by Senator Roth. A Roth IRA allows you to deposit money that is already taxed. This way, when you take the money out, there is not additional amount that needs to be taxed by the government. Some people prefer this over a regular IRA, because IRA doesn't take the taxes out until you go to take the money out. In an IRA, if you have $100,000 dollars saved, you won't get $100,000 dollars, whereas with a Roth IRA, you'd get the $100,000.

"It's important that we limit our discretionary income and begin to focus more on taking less in the now to have more later," Anselmo said.

You can find Anselmo's Wealth Management Group at 4103 La Hwy 42 in Prairieville, Louisiana.

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