Whether you are staring at your golden years from the edge of your retirement seat, or dreaming about the day, decades from now, when you can quit punching the clock and start quitting time, it’s imperative to have the answers to three main questions: Will you have enough money? How do you plan on saving enough? Who is going to help you get there?
Will you have enough money when the time comes?
We’ve talked a lot about this topic. There are life expectancy calculators online. Lists of expenses you need to account for when you are living on a fixed retirement budget. Estimations on the likelihood of Social Security existing by the time it’s your turn to retire. But it all boils down to choosing your target date, estimating your monthly expenses, and then doing the math. Then, you need to get there, which leads me to my next question.
How do you plan on saving up enough?
If your company offers a 401(k) and you aren’t already participating in it, then jump on that wagon and start saving! This is especially imperative if your company generously offers to match any of your contributions. Secondly, consider opening a Roth IRA and put the maximum in each year. Remember, when you turn 50 you can start putting in an extra $1,000 a year. Finally, invest in stocks and bonds. Look at some of our previous posts where we’ve detailed the different types available, then pick what is best for you. Do not accumulate a lot of debt, and pay down the debt you do have. Finally, the biggest factor is diversify, diversify, diversify!
Who is going to help get you there?
Don’t take our word for it, but take our word for it! There are a few people that can help get you were you want to go, and hold your hand, and grow your money, along the way. First, consider hiring an investment advisor should you want to play the market, but not necessarily do it yourself. Some individuals love to learn the ins and outs of the stock market game, but if you’re not one of those, find a professional who is. A retirement financial planner can also offer a different set of skills when it comes to preparing your investment income for retirement. Also, you’ll want to have a solid insurance professional that can help you navigate all the products available to you—whether it’s long-term care insurance, life insurance, etc. Some firms offer a trifecta of these wrapped into a package, but make sure you’re getting the expertise in each area, and not an overview instead.
Next post we will look at the most important interview questions you should ask when searching for these professionals to join your team. Be on the lookout!
Source: Spicer Wealth
Respond and learn how financial products, including insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.