The work culture has made a sharp turn from the traditional nine- to- five, 30-year gig that ends with a steady pension. We are in the era of multiple side-gigs, short-lived startups, flexible work schedules and a work history that includes many jobs and employment gaps before the average person calls it quits.
Retirement is now managed primarily by the employee and many are opting for partial retirements and remain in a semi-retired state for years. Benefits provided by the employer are getting slimmer and workers are now having to proactively take charge of maximizing their earning potential and balancing pay with benefits and flexibility.
These changes are all good. They put the onus of creating an optimal work-life balance, earning a living wage and when and how retirement works squarely on the shoulders of the individual instead of a company or the government.
Workers have more power, options and freedom than ever before. And with all that freedom and power comes hidden pitfalls.
Having a primary job, a couple of side-gigs, rental properties and multiple streams of income is the sexy, chic trend that everyone is following. And it works well and gives you access to additional funds that make life easier short-term but can make your life miserable down the road.
How you ask?
There are rules and regulations that govern every type of income and investment imaginable. And you best believe Uncle Sam will find your extra cash and make you pay dearly for it. The changes in how we earn money also produce changes in how we pay taxes, invest and save for retirement.
If you are “doing the most” financially, you have to be smart and understand all of the benefits and risks associated with being a financial player. You need a good accountant that is also a financial fiduciary and adviser.
All financial advisers are not created equal. And all financial advice — including advice recommended by top economists and financial experts — may not be the best advice for you.
Your financial plan should encompass your complete financial picture, including your goals and priorities. It should include planning for your children, your spouse, aging parents, long-term care, death, loss of income, and so much more. But just because these things should be included in your plan doesn’t mean your adviser will automatically create a plan this inclusive.
Here are five key things your financial adviser should not ignore or omit from your financial plan. Read more.