Most real estate agents are busy professionals who rarely take time to organize their own financial data or do any financial planning. Here are some key points that every real estate agent should consider when thinking about their finances and retirement:
- Due to inconsistencies in monthly income, systematize as much of your finances as possible.
- Determine a spending and saving budget and stick to it.
- Set up an emergency fund to cover roughly nine months of expenses before funding a retirement account.
- Save when the going is good. Too many REALTORS® party like rock stars when the market is going good and save nothing.
- Work with an accountant/investment advisor to determine your effective tax bracket and deduct taxes as earnings come in.
- Shelter as much income as possible with a retirement account.
- If you own real estate, look at a schedule for when to sell and how to defer income taxes that might be incurred.
The above points were compiled from information provided by members of the Financial Planning Association. To find a Certified Financial Planner close to you, visit Planner Search.
