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Retirement Planning—What, Why, When & How?

Retirement planning really involves two questions: What will you do when you retire? How will you afford things when you’re no longer bringing home a paycheck? For most people, it’s not too difficult to find answers to the first question. It’s the money question that turns retirement into a big, looming question mark.

The answer is, you must create and follow a retirement plan. There are many options available to you. Your employer may offer a 401(k) or a 403(b). If not, you can set up your own individual retirement account, or IRA for short. A retirement planner can help you get started with the process. 

Why Is Retirement Planning a Necessity?

You may receive Social Security benefits when you retire, but they’re not likely to cover all your living expenses. Many seniors end up working part-time or even full-time, because they can’t afford to retire. The reason for that is often a lack of planning. Don’t wait any longer.

Retirement planning can actually be fun. Make a list of all the things you want to do when you’re no longer bound by a 9-to-5 schedule. Do you want to visit your cabin in the mountains and go skiing? Or would you rather jet off to your condo at the beach? Or maybe both, depending on the seasons. Maybe you just want to stick close to home and play with the grandkids. The sooner you take control of your finances, the more likely it is for you to retire in style and live life to the fullest.

When Should You Plan for Retirement?

Start planning right now. It doesn’t matter how old you are or how much you love your current job and don’t see yourself quitting the field. You never know what the future is going to hold, and it’s a smart idea to invest in yourself. Building wealth through retirement accounts gives you options. You don’t have to retire if you don’t want to. You can continue working or start a new business instead. Just make saving for the future a priority now.

How Can I Prepare for Retirement?

We’re so glad you asked. As financial planners, we specialize in helping people pursue their retirement goals. We recommend you make an appointment to come see us. Together, we’ll go over your financial situation and discuss your goals. We’ll put together an investment plan to pursue your objectives in building wealth.

FAQs about Retirement Planning

You don’t have to understand financial jargon to create a retirement plan that works for you. Our team of retirement planners will demystify the process for you.

How Much Money Will I Need to Retire?

An article by Investopedia suggests living on 80% of your pre-retirement income, but you may need more. It all depends on what retirement looks like for you, if you’re covered by medical insurance, and what your fixed living expenses will be. We can help you come up with a number for you once we learn more about you and your family.

How Much Should I Save Each Month?

Every dollar counts. If you can only save a little, start with that. Eventually, experts recommend saving 10% to 15% of your salary (According to a CNBC article). We know this sounds like a lot, especially if you’re not used to putting money aside for your future. That’s why we recommend starting with an amount you feel comfortable committing to. To beef up your savings, you can also contribute any additional money you’ll receive in the future, such as bonuses or pay raises to your retirement account. 

Can I Still Reach My Goals If I Start Later in Life?

Absolutely. This is not an invitation to wait if you’re currently on the fence about investing in your retirement. But we know some people just don’t make their financial future a priority until later in life. It’s going to be more difficult to reach your financial goals, but you can definitely build wealth, even if you’re close to retirement age.

The Takeaway about Retirement Planning

We hope you understand the importance of getting started with retirement planning. It’s time for you to invest in yourself and your financial future. Our retirement planners stand ready to discuss your goals and objectives with you. Call us today to get started on your road to building wealth.

*Distributions from traditional IRAs and employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty.

*All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.