Retirement Planning: 4 Crucial Steps
No matter your age, creating a plan for your retirement is an essential part of your financial journey. By determining the kind of future you want, being an intentional spender, and planning in advance, you can secure your financial future. Here are four steps to help you begin successfully planning for your retirement!
Step 1 - Start Saving NOW
It’s never too early to begin saving for your retirement! The earlier you start, the more time your money will have to accumulate. However, it’s not too late to start. Each dollar you save now will be helpful in the future.
Step 2 - Determine Your Savings Goal
The standard rule of thumb is to replace 70% to 90% of your annual pre-retirement income via savings and Social Security. This is essential when considering what you want your lifestyle to look like post-retirement. This may include vacations, housing costs, medical expenses, and daily expenses.
Step 3 - Make Saving a Priority
Instead of treating retirement savings like an afterthought, be intentional about your saving journey. If your employer offers a retirement match, taking advantage of this opportunity is in your best interest. With around a quarter of US employees not utilizing their company’s retirement programs, many people are missing out on “free money” that would be much appreciated once they reach retirement. If you are uncertain whether you are maximizing your 401K account, speak with your organization's Human Resource Department.
Step 4 - Decide on the best retirement plan
Various retirement options may be available to you, including: 401(k), Roth IRA, Traditional IRA, Self-directed IRA, Simple IRA, SEP IRA, or Solo 401(k). Choosing the right plan may require research and insight from a financial professional. To learn more about what each of these options entails, click here: Types of Retirement Plans | U.S. Department of Labor (dol.gov)
Your retirement plans will typically change and evolve throughout the years, so be sure to stay focused on the big picture. By referencing these four steps for saving and speaking with a financial advisor, you can work towards a successful, healthy retirement!
This communication is intended for informational purposes only and is not intended to be a substitute for specific individualized investment planning advice, as individualized situations will vary. The information presented here should only be relied upon when coordinated with individual professional advice.