It is never too early or too late to start planning for your retirement. Retirement planning allows you to put away money for your future without affecting your comfort and quality of life today. Working with a financial advisor can help you find the right balance to achieve the best retirement savings regardless of how much longer you plan to work.
How Much Should I Save?
One of the most commonly asked questions with regard to retirement planning is the amount of money you should be saving. Most financial planners recommend putting away 15% of your paycheck each month toward your retirement fund. If you are just starting out or need a little extra cash right now, consider putting away at least the amount of your employer’s retirement savings match option—this will allow you to take advantage of this valuable asset without overextending your finances. Alternatively, you can work with your financial planner to calculate how much you’ll want in retirement savings and spread out your contributions over the years you plan to work to reach this goal.
Can’t I Just Rely on Social Security?
Many people feel overwhelmed at the idea of saving for retirement on their own. They believe that since they currently pay Social Security taxes each paycheck, this money will be sufficient to support them in retirement. However, the truth is that Social Security may not be available in the future—the fund may become overdrawn or the system itself may change. You should not rely solely on Social Security to provide you with your financial needs after retirement. Instead, consider your other options, such as 401(k) plans, mutual funds, and IRAs, which will always be there for you when you are ready to retire.
The first step in successful retirement planning is understanding your options and finding the best mix of benefits that meet your unique needs. At Financial Directions LLC, we can help you develop a personalized retirement portfolio; we also specialize in estate planning, risk analysis, investment planning, and insurance valuations. Visit us online or call (520) 408-7777 to discuss your needs today!
