It's never too early to speak to a retirement advisor. According to statistics obtained from the National Institute on Retirement Security show that:
How well you enjoy your retirement depends on how well you prepare for it now. You need help in analyzing various factors that relate to your retirement such as:
We can help you determine what those factors mean and project the type of savings you need to cover your retirement needs.
Retirement needs analysis addresses different scenarios by adjusting the funding requirements of the plan to align what you want with realistic goals. Different scenarios can be run with modified assumptions like retiring later or funding for a lower retirement income goal to create a viable plan with realistic goals tailored to your needs.
A retirement needs analysis will help show you the difference between the income you can realistically expect to receive from Social Security, a company-sponsored pension, and personal savings/investments compared to the income you think you will need during retirement to maintain a specific lifestyle. In 2012 the average monthly Social Security benefit for a retired worked was $1,230.00. If your combined income from these various sources does not equal enough, you could be faced with a retirement-income gap.
You need to think about what your long-term goals and what you would like to do in retirement to start understanding the costs as well as how much you really need to save.
Invest in your future and start participating in your company's or an individual retirement plan. Social Security will not provide enough to maintain the lifestyle you want through your retirement years. It is only estimated to provide about 40% of the average retiree's income. With your employer's tax-deferred plan, use valuable pretax dollars to help build your retirement savings. This way, the full amount goes to work for you right away, which can help you build your savings faster. With a tax-deferred account — such as a traditional IRA, a nonqualified variable annuity or your workplace 403(b), 457(b), 401(k) plan — all taxes on interest and earnings are deferred until withdrawal, usually at retirement. Over time, the difference can be substantial.
Understand the types of available investments and your risk tolerance. There are a variety of investment types and retirement plans to meet individual needs. We have tools and charts to help you understand your feelings about investment risks and the returns you want to see that are associated with them. Investment risk is simply the possibility that an investment's value will go up or down. Your ability to accept risk is based partly on your personality, current financial situation, need for immediate cash, investment preferences, time horizon and other factors. Understanding those two factors will help us in determining a plan that is right for you.
Select investment options that are available and appropriate for you. Your employer's plan may offer a variety of mutual funds among the different asset categories and classes. We can help you create a mix of investments for your retirement plan goals.
Start investing early and pay yourself first. Obviously, the longer you save, the more money you will have for retirement. Generally, the more time you have, the more aggressive you can afford to be with your investments. Pay off your debt and stay out of debt so you can afford to do the things you really want to do down the line. One of the best strategies for retirement planning is to start planning and saving early.
Develop an individual plan that suits your needs. People are different and have different needs and lifestyles. Someone out of college has drastically different needs and debt than someone closer to retirement. We can help customize your plan by helping to choose investments that are appropriate for your goals and/or family. By setting clear and attainable goals, you will have a plan for funding those goals, you will know how to invest appropriately and you will know you have begun accumulating the money you will need during retirement.
Studies show that the key to investing is asset allocation; the science of selecting the right types of investments in the right amounts. If you also diversify your investments by spreading the risk around by investing in more than one thing, you can potentially minimize risks and maximize your returns. Keep in mind that neither asset allocation nor diversification can ensure a profit or protect you against market loss. A combination of investments, some more risky and some less risky, can help.
Invest For the long term. By buying and selling investments or try to “time” the market, can potentially destroy your retirement savings. In addition, you could get hit with capital gains taxes or penalties that apply to early withdrawals on tax-deferred accounts. It is smarter to take a long-term view when you are investing for retirement. Call us today to speak with a certified retirement advisor.