Balancing Current Financial Needs With Retirement Dreams

By Bill Taber

Enjoying the present moment is essential, but so is preparing for a stable and fulfilling future. Many people find it challenging to strike the right balance between living for today and planning for a comfortable retirement.

In this article, I share practical strategies for developing a financial plan that supports both your current lifestyle and long-term goals. Learn how to identify and reduce unnecessary expenses, optimize retirement contributions, and explore investment opportunities aligned with your time horizon and risk tolerance.

Prioritize Current Needs

Prioritizing current needs is important, but long-term financial stability should not suffer as a result. The first step in balancing the present and the future is keeping a careful record of your income and expenses. Spreadsheets or budgeting apps can help you pinpoint where your money is going.

You can use this assessment to find areas where you might be able to lower spending, such as eating out less, looking at less expensive entertainment options, or negotiating cheaper insurance and utility prices.

Additionally, keep in mind that prioritizing current needs does not mean you should ignore joyful experiences. For your general well-being, do not forget to set aside money for things like hobbies, vacations, or social gatherings. A life-centered financial plan is absolutely crucial for realizing your long-term goals.

Optimize Retirement Savings

Another important piece of the financial-balance puzzle is to make the most of your retirement savings, including utilizing employer-sponsored retirement plans. Workplace plans like 401(k)s typically include employer matching contributions, which is basically free money you can use toward your retirement. Contributing up to the matching limit is a simple way to significantly boost your savings. 

Beyond 401(k)s, consider contributing to individual retirement accounts (IRAs). IRAs can also be a great savings tool, but understanding the different types is key. While donations to traditional IRAs are tax-deductible, withdrawals made after retirement are subject to taxes. 

Conversely, eligible withdrawals from a Roth IRA are tax-free in retirement, even when the account is funded with after-tax money. Knowing your marginal tax bracket, income, and long-term financial objectives can help determine which choice is right for you. 

By strategically using these savings vehicles, you can optimize your retirement contributions and increase your ability to pursue financial stability in your later years.

Find the Right Balance

It takes self-discipline to strike the right balance between living in the moment and saving for the future. Too many Americans pay their bills and then save what is left in their checking account at the end of the month. Frequently, there is little left to save. It is essential to follow the “pay yourself first” philosophy where you routinely contribute a percentage of your salary to retirement accounts before paying your bills. In other words, treat retirement savings as an expense that cannot be negotiated. 

It is crucial to set reasonable and adequate retirement savings goals. According to the U.S. Federal Reserve, the average American is saving roughly only 4% of their income. Aim for SMART (specific, measurable, realistic, relevant, and time-bound) goals rather than nebulous targets like “whatever is left at the end of the month”. For example, instead of saying, “Save more for retirement,” set a goal to “Contribute at least 15% of my income to my 401(k) and IRA by the end of the year.”

However, the reality of day-to-day living will require you to be flexible in your budgeting process.  Once you have paid yourself first with a set percentage of income contributed to retirement accounts, you may need to review the rest of your expense items, monitor your progress, and make adjustments to other spending categories to stay on course for other short- and long-term objectives. The secret to achieving financial independence is to make consistent contributions to your retirement accounts, allowing time and the power of compounded interest to build your wealth. 

Seek Professional Guidance to Find the Balance 

Consult with a financial advisor to get professional guidance in navigating the details of balancing current financial needs with retirement goals. With their extensive knowledge and experience, advisors can assist you in creating individualized plans that are specific to your particular financial situation.

A financial advisor can also help you identify and implement ways to optimize your retirement funds while continuing to lead a fulfilling life now. They can offer advice on how to leverage retirement account contributions, reduce taxes, and explore investment possibilities that fit your time horizon and risk tolerance. 

Working with a knowledgeable advisor can help you make wise decisions, obtain insightful information, and boost your confidence in reaching your financial objectives now and in the future.

Take Action Today

Create financial confidence with a well-balanced approach to living life to the fullest. At TABER Asset Management, we’re here to guide you in making smart financial choices so you can enjoy the benefits—now and in the future.

Get started today by scheduling a 15-minute intro phone call online or reaching out to us at 515-557-1860 or invest@taberasset.com. 

About Bill

Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm, in Des Moines, Iowa, that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality.

Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered. 

In his spare time, Bill enjoys giving back to his community and spending time with his family. His hobbies include traveling, gardening, reading, and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and being in nature. To learn more about Bill, connect with him on LinkedIn.