Retirement Planning
Let’s plan for your future.
Two steps to planning for retirement
The idea behind retirement planning is simple: Start saving as much as you can, as early as you can. Putting it into practice and knowing where to park your money? Well, that’s why we’re here to help.
Five Steps to Successful Retirement Savings
Choose your savings vehicle
There are a variety of savings options for retirement, from 401(k)s to individual retirement accounts (IRAs). Our advisors can help you understand your options and choose the right path to get to your retirement goals.
Start saving early
The earlier you start saving, the better chance your money has to grow enough to pursue your retirement goals. That’s the power of time and compound interest.
Increase your savings
Once you start saving, the next step is to set aside a little more each month, whenever possible. Is there anywhere you can cut your expenses? Unexpected money—a year-end bonus, a birthday check, a payment you no longer have to make—is another opportunity to put a little more in your retirement pot.
Factor in health care
Don’t forget about your health care expenses in retirement. A June 2023 report from Fidelity Investments estimated a healthy 65-year-old couple would have approximately $315,000 in health care costs in retirement.
Get professional advice
Planning for retirement can feel overwhelming, but you don’t have to figure it out alone. Talk to one of our financial advisors to get personalized guidance on your retirement goals and how to save for them.
Resources
We’ve gathered some light reading to help you plan for retirement.
Napkin Math
Here are a few rules of thumb you can use to get a sense of what your savings goals should be.
75% of your income
In order to keep your current lifestyle, it’s recommended that you save enough to replace 75-80% of your pre-retirement income. Of course, this is just a ballpark estimate. Your savings goals will depend on your individual circumstances.
Rule of 72
You can estimate how long it takes to double your investment by dividing 72 by your expected rate of return. If you think you’ll earn an average return of 6%, simply divide 72 by six and you can expect your money to double in roughly 12 years. Another reason to start saving sooner than later!
The 7% principle
A good starting goal is to save 7% of your annual income. As you get older, you’ll want to shoot for higher savings goals: 10% in your 30s, 15% in your 40s, and 20% in your 50s and 60s.
Talk to an advisor.
Ready to start planning for your retirement? Want to make sure you’re pursuing your goals? Schedule an appointment to speak with one of our financial advisors and get some guidance.
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