4 Steps to Plan a Successful Retirement – September 16, 2020

Let’s review these principles.

1.) How much should I be saving?

Much will depend on your income and the lifestyle you would like to maintain in retirement. Many believe spending will total 70% – 80% of pre-retirement outlays. Much will depend on your situation.

2.) When should I begin saving?

The answer is quite simple – it’s never too early. The magic of compounding will pay big dividends during your retirement years.

3.) What retirement accounts should I fund?

Choices abound but save through your company’s 401k if the company matches contributions. Don’t turn down free money.

Whether to fund a traditional IRA or a Roth depends on many factors, including your marginal tax rate today and expected rate in retirement.

4.) Maintain flexibility and keep your plan updated.

You may decide to work a few extra years or work part time in retirement. If so, you may delay Social Security, which increases your annual benefit. Or, you may not need to tap your nest egg right away.

Bottom line

The steps above are a brief outline. No plans are exactly alike, but following time-tested guidelines can help you confidently save for your retirement.

Created 2020-09-16 14:32:22