Creating a retirement plan is vitally important if you want to be financially secure as a senior. Many older people struggle to live on Social Security and have little savings or no savings at all. You should be able to enjoy yourself as you get older and leave work, and you cannot do that if you are worried about money all the time.
Eghrari Wealth Training Law Firm can provide you with personalized assistance making your retirement plan so you can make the types of smart choices that will allow you to build up a good nest egg for retirement. You do not have to be very wealthy or make a ton of money in order to save enough for retirement. You just have to make prudent choices. Starting early, for example, can be one of the best ways to make sure you have enough retirement funds.
If you are ready for personalized help making your retirement plans, give us a call. We assist people of all ages, and people at all phases of life. We have also prepared this retirement planning checklist to help you to ensure you are doing the right things to save for retirement.
Retirement Planning Checklist and Resources
These are some of the key steps you need to take in order to get on the right path to saving for retirement… as well as some resources that can help you to complete each step.
1. Determine when you want to retire
You need to think about what your goals are as far as the age at which you want to retire. If you want to retire young, consider what you will do to pass the time. If you are hoping to keep working, consider whether your job is a physically demanding one and whether your body will be able to hold out and continue doing the labor.
2. Determine how much you need to have saved
You must decide how much money you actually need to save for retirement so you can set savings goals. Nerd Wallet has a calculator that will calculate how much you need to have saved in order to retire. Kiplinger also has a calculator that you can use to determine the amount of money you need to have saved in order to leave the workforce permanently.
The amount you will need to have saved is going to vary based on the amount of income you actually want to have available to you during retirement.
3. Determine how much you need to put aside to reach your savings goals
You need to save over the course of your working life in order to build up a big enough nest egg to retire with financial security. The Vanguard Group provides some general information on the amount you should be saving each month in order to make it possible for you to retire. Lifehacker can allow you to find out more specifically how much you should be saving by providing access to a calculator that you can input your info into to find out what your monthly savings goal should be.
The general rule from most experts is that you should be saving at least 10 to 15 percent of your income. While this can seem daunting, you can start with making smaller investments and try to work up to saving the appropriate percentage of income as quickly as possible.
4. Identify tax-advantaged accounts you can use to save
One of the best ways to ensure you save enough for retirement is to take advantage of accounts that make saving easier. You can invest in a 401(K) if you have one at work, as this will provide a tax break and your employer may also match a portion of the money you put into your account. You can also invest in Individual Retirement Accounts (IRAs).
There are different kinds of IRAs with varying rules for contribution limits and for when you can enjoy tax benefits. The IRS provides details on Individual Retirement Arrangements that you can take advantage of.
5. Open and fund your accounts
When you have decided to open a retirement account, you need to find the right place to actually open the account and put your money. US News provides a list of eight possible financial institutions where you could open your first IRA.
Once you open an IRA or other retirement account, you need to start putting money into it. If possible, consider automating your retirement investing so you can transfer funds automatically to the accounts that you are investing in. This way, you will not be tempted to skip a month as the money will automatically be taken out of your bank accounts and saved for your future.
By following these steps, you can get on the right path to retirement. There are a lot of things to think about as you try to save for your future, and you should strongly consider getting qualified legal advice so you can make the right choices throughout your life to achieve a secure retirement. Give us a call at (631) 265-0599 or contact us online to find out more about the ways in which Eghrari Wealth Training Law Firm can assist you with all of your retirement planning needs.