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These non-essential costs are probably getting in the way of your financial goals

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These non-essential costs are probably getting in the way of your financial goals
Clients are advised to minimize their lifestyle spending if they want to improve their future financial prospects, as these non-essentials could blow their budget, according to this CNBC article. A survey by TD Ameritrust has found that millennials, who lag behind in terms of credit card debt and retirement savings, spend the most on vacation, dining out and other unnecessary expenses. They should stick to essentials such as food and housing and ensure that they set aside some amount for by automating contributions to 401(k)s or IRAs, according to this article.

The big thing everyone should think about before retiring — but almost no one does
A study conducted by Harvard Business School professor Teresa Amabile and other researchers shows that aside from wealth and health, seniors should also factor in self-identity as they plan for their golden years, according to this article on MarketWatch. “The vast majority of them thought about financial matters” as well as health concerns, but very few clients had thought about self-identity, says the professor. “When we asked them if they were doing other things to prepare for retirement, some of them said ‘like what?’ It didn’t occur to them that that [retirement] would effect a major psychological shift.”

Here's a simple way to boost your retirement by as much as $80,000
Clients who have no IRA should consider setting up one to boost their retirement prospects, according to this article from Money. The contribution limits to an IRA increased to $6,000 this year from $5,500 last year, and the increase will enable them to save $80,000 more over 40 years, assuming the rate of return is 6%. Aside from it being a tax-advantaged savings account, an IRA can also be used to consolidate multiple 401(k) assets. Those in their high peak earnings years will also benefit from a Roth IRA, which is funded with aftertax dollars in exchange for a tax-free distributions in retirement.

How much will my Social Security retirement benefit increase each month?
A senior who intends to delay her Social Security retirement benefit can expect her monthly benefit payout to increase by 8% per year or two-thirds of 1% for every month she defers the benefit, according to this Q&A article from Forbes. For example, she can see her benefit increase by more than 3.33% if she reaches her full retirement age in March and starts collecting her benefit in August. She will receive the additional increase in her January 2020 paycheck, as delayed retirement credits are added on a calendar year basis.

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