Are you on track with your retirement planning? To maintain the same standard of living through retirement that was enjoyed through their working years, most individuals need a multi-faceted plan, including how to use a 401(k), an IRA, an after-tax brokerage account, a health savings account and even an emergency fund to meet their needs.
Here are some strategies to ensure you save as much as you can before those long-awaited water cannons (where available these days) welcome you home on your final flight.
The earlier, the better
Yes, you’ve probably heard it before - the earlier you save, the better. Having compounding interest on your side is always a win. Saving early also provides you with the luxury of taking greater investment risks early on. As retirement looms closer, conservative strategies are encouraged to preserve your assets. You need to take action today to ensure you will be able to enjoy the retirement lifestyle you desire.
Most airlines contribute a significant percentage of your income to your 401(k) plan, but it’s not always safe to rely on that alone. If you start making additional contributions early, or open additional retirement accounts, your savings at retirement can be significantly higher.
Set Goals and Timeline Benchmarks
Before you can start saving at an effective rate, you must first calculate how much you need to save by the time you retire. Once you know what your end result looks like, you can set a goal based on your current savings and create a plan to help you reach that desired outcome.
You can then break your goal down into benchmarks, such as monthly or yearly amounts, so that you know how much you have to save along the way and how aggressively you may need to invest to stay on track. If you find that you have not saved enough, you might need to make lifestyle changes now to achieve your goal at retirement.
Starting to save early allows you to readjust your goals as changes occur throughout your life and career. The longer you wait, the more likely it becomes that by the time you realize your plan isn’t working, or that you don’t have a plan at all, it will be too late.
We Can Help
It’s important to consult a professional when determining how much you need to save in order to reach your retirement goals. A financial advisor can run a personal analysis of your current income and savings to help you set appropriate benchmarks for your timeline, as well as recommend corresponding investments to help you reach those goals.
Request your free personal analysis today to find out your probability of success at your current savings rate, and how RAA can help you develop a plan to achieve a full, sustainable retirement. Get started by completing the personal analysis questionnaire.
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Disclaimer: This blog is intended for informational purposes only and should not be construed as individual investment advice. Actual recommendations are provided by Retirement Advisors of America following consultation and are custom-tailored to each investor’s unique needs and circumstances. The information contained herein is from sources believed to be accurate and reliable. However, Retirement Advisors of America accepts no legal responsibility for any errors or omissions. Investments in stocks, bonds, and mutual funds may increase or decrease in value. Past performance is no guarantee of future results. Any of the charts and graphs included in this blog are not recommendations for the purchase and sale of any security.