In a recent interview with CNBC, Wes Moss and other experts share financial strategies you can employ now and in retirement to attain happiness.
Everyone wants to be happy in retirement.
So what will it take to get there?
It’s not just saving money, although that is key, according to certified financial planner Wes Moss, chief investment strategist at Atlanta-based Capital Investment Advisors and author of the upcoming book, “What the Happiest Retirees Know.”
“Does more money buy more happiness?” he said. “Yes, it does, actually, but only up to a certain point.”
That point is $500,000 in retirement savings; after that, happiness plateaus, Moss said his research shows.
Here are financial strategies you can employ now and in retirement to attain happiness, according to experts.
Start saving now
Saving money can make you feel happier, according to researcher Elizabeth Dunn, chief science officer for financial technology firm Happy Money and co-author of “Happy Money: The Science of Happier Spending.”
Break your large saving goals, such as those for retirement, into bite-size pieces that feel doable, she said. Small steps are an easy way to form habits that stick.
“Just taking the time to create a savings account may have an immediate impact on your overall happiness,” added Dunn, a professor in the Department of Psychology at the University of British Columbia.
As your habits stick, increase your contributions to your retirement plan so that you can have the money you’ll ultimately need later in life.
Focus on paying down your mortgage
Some financial experts may suggest paying off a mortgage isn’t a high priority, thanks to low interest rates.
Yet people who pay off their mortgage within five years of retirement are four times more likely to end up happier than those who don’t, Moss said his research shows.
“The psychological side of not having a mortgage, perhaps is even more powerful [than the money side], and kind of outweighs the financial argument to not pay it off,” he said.
Making extra payments or sending in more than the monthly amount due can help shave years off the life of the loan.
Read the full CNBC Article here.
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