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Retirement Planning

What You Need to Know about Retirement Planning

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Retirement planning is an important aspect of financial planning for your future. You don’t want to wait until it’s too late to save for retirement, because you’ll miss out on the opportunity to build significant wealth. But even if you’re nearing retirement age, it’s not too late to make a difference for your future, because you can take advantage of catch-up contributions. 

We’re here to help you prepare for retirement, no matter where you’re at with your goals. We can help you select the right investment vehicles for your situation, potentially reducing fees and taxes and increasing investment returns. Our retirement planners are here to answer your questions and help you make the best decision for your future.

Retirement Plan Options

You have several options to save for retirement. You can save in a tax-deferred retirement account, such as:

  • 401(k) or 403(b)
  • IRA
  • Other defined contribution plans
  • Defined benefit plans or pensions

Employer-sponsored plans, such as the 401(k) and 403(b), are usually defined contribution plans. You determine how much you contribute and your employer may match a portion of that. What you’ll receive during retirement depends on how your investments perform. We can help you manage your 401(k) or 403(b) by balancing your portfolio and optimizing your asset performance. 

Defined benefit plans or pensions are usually offered to government or public service employees. These plans offer fixed benefits, depending on your years of service and average salary. IRAs are individual retirement accounts you can use to supplement your other retirement savings. We can help you set up and manage your IRA to ensure you meet your retirement income goals. 

You may also have other sources of retirement income, including:

  • Roth accounts
  • Investment portfolios
  • Social Security benefits

Roth retirement accounts are a great way to save money for retirement after you’ve maxed out your other retirement contributions. Any distributions from a Roth account will be tax free during retirement. You can also invest in your future with a private investment portfolio. While the gains may be taxable, you don’t have to wait until retirement age to access the funds.

<span style="font-weight: 400;" data-mce-style="font-weight: 400;">Creating an Income Distribution Plan</span>

Creating an Income Distribution Plan

It’s important to think about your retirement distribution plan before you leave the workforce. An income distribution plan is used to calculate how much income you can receive during retirement to cover your living expenses. You don’t want to withdraw funds whenever you need money, because you’ll risk outliving your money.

We can help you create an income distribution plan that potentially increases your earnings, mitigates your tax burden, and allows your remaining nest egg to grow. We can calculate our expected retirement benefits from your different retirement plans and create a strategy for your income distributions. With the help of annuities, you can even receive a fixed income when you’re retired, making it easier to budget.

FAQs about Retirement Planning

How Much Will I Need to Live on When I Retire?

How much income you need during retirement depends on your cost of living. Most people assume you need about 80% of your pre-retirement income. But this number may be lower or higher depending on your lifestyle goals during retirements. Paying off debt before you retire can help you live on a smaller income than you’re used to.

How Much Do I Need to Maintain My Current Lifestyle?

To maintain your current lifestyle, you’ll probably need 80% of your pre-retirement income. However, if you incur significant expenses because of work, such as tailored suits or business lunches, you may need less. We can help you calculate how much income you will need during your retirement years. 

Is It Too Late to Start Planning My Retirement?

While it might have been better to plan for retirement sooner, it’s not too late to make a difference. We can help you select the best investment vehicles to meet your financial goals. The shorter time period will affect your ability to build real wealth, but don’t let it stop you from doing what you can to prepare for your financial future. 

Prioritize Your Retirement Planning

It’s time to prioritize financial planning for your future. Don’t wait to plan for your retirement. We can help you manage your retirement funds and create a retirement plan that works for your financial situation, goals, and timelines. Make an appointment with one of our advisors today to discuss your retirement. | 209-579-9992