financial position to set money aside each month. By investing early and often in your retirement, you may be able to save up to three times as much or more than you would if you start later in life.Every adult who has full-time employment should have a plan for their retirement, especially those who are in a
However, it is important to learn effective retirement planning strategies and tips. The best way to ensure a successful retirement plan is to work with a wealth management company, but you can get started yourself as well.
What Is Retirement Planning?
Retirement planning is a way to prepare for a comfortable life after you stop working. Retirement planning should start early in adulthood and take place throughout your entire working career, although it is never too late to begin retirement planning.
Every retirement plan looks different. Not everyone requires the same amount of retirement savings, and some may use it as more of a way to prepare for the non-financial aspects of retirement. This may include estate planning, plans to travel or permanently move, handle taxes and more.
Helpful Tips For Retirement Planning
When it comes to retirement planning, there are a few ways you can successfully approach this process. Knowing these tactics and practicing them regularly will ensure a smooth retirement planning process. So, when you’re ready to begin your process, make sure to follow these tips! Read on to check out a few efficient avenues for successful retirement planning:
Stick To Your Goals
Anyone can set goals, but sticking to those goals is what sets people apart in planning. Being able to stay strict to those goals will greatly benefit you in the endgame of retirement planning, allowing for a laid-back retirement. Keep saving and stick to this habit, it will be sure to improve all aspects of retirement planning.
Assess Your Retirement Needs
The overall amount that you need to save will be based on your retirement needs. Knowing exactly how you want to spend retirement is key in planning. According to experts, retirees need around 70-90% of their preretirement income to maintain life in retirement. Know what you need, and save accordingly in order to get there. By starting your saving early on, you allow yourself a better sense of security in your retirement years. When employees plan ahead for their years of relaxation, they’re investing in their future in an effective way.
Contribute To Your Employers Plan
Does your employer offer a plan, such as a 401(k)? If so, contribute all that you can into the account. When you contribute into the account, your contributions are taxed at a lower rate and your company may even increase what they contribute. By setting up automatic deductions on the account, it makes the process even easier. Make sure you’re staying informed on what your employer offers and how the account works.
Don’t Touch Retirement Savings
When you’re saving for your future, leave every penny you’ve collected alone. Leave it to grow and prosper so you can enjoy retirement. If you were to touch any of the saved amounts, you will lose principal and interest. There may also be a potential for withdrawal penalties as well as a loss of tax benefits. If you were to change your job, make sure to leave your savings in your current account or roll it over to an IRA. You can also roll it over to your new employer’s plan.
Utilize An Individual Retirement Account
Individual retirement accounts (IRAs) are a great tactic when retirement planning as well. These accounts allow you to contribute up to $6,000 a year into them, or even more if you’re above 50 years old. These types of accounts offer many tax advantages and motivate people to save. These IRAs provide an easy and efficient way to save. Account-holders can set up automatic deductions on their checkings or savings accounts, ensuring they never miss a chance to invest in their future.
Talk To The Retirement Planning Professionals
Hiring a wealth management company can help ensure retirement planning goes smoothly. They can help with all aspects of planning, including maximizing financial savings, tax planning, estate and legacy planning and more.
Campbell Wealth Management can help you plan for a comfortable and financially independent retirement. We believe all of our clients should be able to enjoy their retirement the way they desire after decades of working to build their wealth. You can reach us by phone or request a complimentary virtual consultation with one of our Fiduciary Investment Advisors to learn more about retirement planning and get your planning journey started.