Retirement planning has been defined as a process of setting goals for retirement income, along with the necessary actions and decisions to reach those goals. This process should include:
- Identifying sources of income
- Estimating expenses
- Implementing a savings program
- Managing assets
The retirement planning at Beacon Hill Financial can help you with every step of the process beginning with a written financial plan and risk analysis to customize your portfolio to your exact wants and needs. Contact us today to arrange your free consultation.
Retirement Planning Goals
Retirement planning must begin long before you retire. The amount of money you need to retire comfortably is highly individualized, but there are numerous questions to ask that can give you an idea of how much to save.
- Will your home be paid off by your target retirement age?
- Do you plan to travel in retirement?
- What lifestyle choices and habits are important for you to maintain?
- Are you prepared for unexpected health and medical complications, besides Medicare?
- What are your aspirations for retirement? What do you hope to achieve/enjoy?
- What could possibly stand in the way of achieving/enjoying your goals?
Stages of Retirement Planning
Young Adulthood (Ages 21-35)
Many in this stage of life are just embarking on the education and training to begin a new career and therefore may not have much money to begin investing. What they do have in abundance at this stage is time; time to let investments mature.
- Take advantage of compound interest. This allows your interest to earn interest, and the more time you have, the more interest you will earn.
- Participate in employer-sponsored 401(k) or 403(b) plans. A benefit of these qualified retirement plans is that your employer has the option to match what you invest, up to a certain amount.
- Other retirement savings accounts that provide tax advantages include the IRA and Roth IRA. A Roth IRA can be an excellent tool for young adults, as it is funded with post-tax dollars. This eliminates the immediate tax deduction, but it avoids a bigger income-tax bite when the money is withdrawn at retirement.
Early Midlife (36-50)
This phase of life includes the financial strains of mortgages, student loans, insurance premiums, children and their college expenses, and credit card debt. However, it is crucial that you continue saving at this stage. You are likely earning more money now, and you still have many years to invest and earn interest.
Later Midlife (50-65)
The 5 to 10 years before you retire is a critical time for planning to meet your goal. At this stage, your investment accounts should become more conservative. Presumably, you are earning even higher wages than before and at least some of those early life expenses (mortgages, student loans, credit card debt) are paid off. This can leave you with more disposable income to invest.
Retirement Years (65+)
Early in retirement years, income is a major factor to enable you to fulfill your retirement dreams. Once you retire you spend time enjoying traveling and others goals you have always dreamed of through your working years. Later in your retirement years, long-term care costs become more of a concern as well as putting your estate in order to pass efficiently on to your heirs.
Begin Your Retirement Planning Now
Call Beacon Hill Financial for retirement planning at 866-289-0759 or fill out the online contact form to request your FREE retirement planning consultation. We can help you plan for retirement no matter your current stage of life. Don’t wait any longer to begin planning for your future.