Crafting a Strong Retirement: 6 Tips for Commercial Construction Professionals

As a commercial construction professional, you bring dedication and precision to your work. Whether you are an engineer, estimator, project manager, or other high-level employee, you've been instrumental in creating the urban landscapes we live in. However, the hard work can’t end at the job site. Assembling a sound financial future is crucial to retiring without worrying about running out of money.

Complex construction projects are a part of your daily life. And you might not have had the time or desire to focus on retirement planning, leaving you worried that you’re making mistakes. Just as a minor error in the blueprint can create complications in a project, missing crucial details in financial planning could have long-term consequences. This is where creating a custom financial blueprint comes into play. Here are six tips to help you structure your financial future:

1. Start Saving Early

Whether you work for Kiewit Construction, Turner Construction Company, or Roebbelen Contracting, you know you have to start each project with a solid foundation. In finance, it's the same principle.

Begin saving as early as possible. Thanks to compound interest, even modest savings can snowball over time. If you're not already saving for retirement, start now, regardless of your age.

There are internet calculators that can help you determine how much to put away each month toward retirement. A financial advisor can give you a more specific answer based on your financial situation and goals.

2. Maximize Your Retirement Contributions

Just as you'd source the best materials for a project, make sure you're utilizing the best financial tools available. Contribute to your employer's 401(k) or a similar retirement plan. If your employer matches contributions, aim to take full advantage of it. Strive to at least get the full match—it's essentially free money.

3. Diversify Your Investments

It's important not to put all your eggs in one basket when it comes to investing. A diversified investment portfolio can help protect you against major losses.

Diversification often involves a mix of different asset types, such as stocks, bonds, and real estate. A fiduciary financial advisor can help guide you in setting up a diversified portfolio that aligns with your risk tolerance and retirement goals.

4. Eliminate Debt

As you approach retirement, aim to pay off as much debt as possible. High-interest debts, such as credit cards, should be the first to go. You also might want to consider paying down or off your mortgage. Entering retirement debt-free can significantly reduce the amount of money you need to live comfortably.

5. Plan for Healthcare Costs

Healthcare can be a major expense in retirement. Consider contributing to a health savings account (HSA) if you're eligible, which allows you to put away pre-tax dollars for medical expenses.

Also, consider purchasing long-term care insurance, as the cost of assisted living or nursing care can quickly drain your savings.

6. Develop a Detailed Financial Plan

Much like you'd never commence a project without a comprehensive blueprint, you don’t want to approach retirement without a detailed financial plan. This plan, constantly reassessed and adapted based on your evolving circumstances and retirement goals, can serve as your guide toward a comfortable retirement.

You might consider engaging a fiduciary, fee-only planner to help craft your blueprint. A firm like ours, with expertise in the needs of high-level employees in the commercial construction industry, can offer valuable guidance.

We believe you should be able to enjoy your retirement after a lifetime of hard work. Our goal is to help you:

• Enjoy a higher success rate than doing it on your own

• Have “permission” to do the things that are most important to you

• Make the most of your prime years by spending your money with confidence

Schedule a complimentary, 15-minute chat with a fee-only, fiduciary financial advisor today to discuss your personal situation.

This material was generated using artificial intelligence (ChatGPT) and edited by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.

Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Roseville and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.