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As you start to grow older, there are certain things that you just can't afford to be unprepared for. Retirement is at the top of the list. Being able to live and cover your expenses comfortably is an important part of living a long, healthy, and happy life.
But just because it's critically important doesn't mean that planning for your retirement is easy. It may even seem impossible — after all, you can't see into the future. How are you supposed to know how much money you'll need after you're done working and ready to start the next phase in your life?
With Burton Wealth Management at your side, you won't have to. We'll help you through every part of your retirement planning journey so you can put your mind at ease about your future. Here are a few things to know about planning retirement.
Retirement planning involves, as the name suggests, making adequate financial preparations for the time in your life when you stop working. This involves assessing your expected post-retirement needs, and identifying opportunities to invest and save money so you can be confident that you have enough to live on in retirement.
Effective retirement planning provides the kind of confidence that comes with knowing you have a sufficient runway to spend the rest of your life without worrying about money.
But it's actually more difficult to plan for retirement today than ever before — simply because people are living longer on average than they did in the past. With the prospect of paying for retirement needs for as many as 20 years, retirees need to be concerned with things like cost of living, health care expenses, travel, and other important considerations.
When you're ready to learn more about retirement planning, the best way to take your first steps is by speaking to a professional advisor. Most people have an employer-sponsored pension account, like a 401K or an IRA, but don't take this to mean that you have your retirement plan handled.
At Burton Wealth Management, we can help you verify that you're on track to have sufficient retirement income and account for the impact things like tax burden and inflation will have on the amount you'll need to have on hand to retire comfortably.
Now that you know how and why retirement planning should be in the front of your mind, it's time to lay out your options to build up your retirement savings.
Most people's retirement savings come from three main sources:
Employer-Sponsored Savings Accounts
The most popular employer-sponsored saving account is the 401K. This is an investment account that grows with contributions from your employer as well as a pre-set monthly contribution from your own paychecks. Some employees get a pension that pays out over time after retirement.
Personal Savings Accounts
You can also save on your own — not in a normal savings account, but one that's invested and grows at a higher yield. Some examples of personal retirement accounts are traditional IRAs and Roth IRAs. Ask your retirement advisor which one is right for you!
Social security is a public program that provides a fixed income for retirees. While it can provide a useful method of covering your important expenses in retirement, it is not likely to last for your entire life and should be supplemented by savings.
This depends on a few things: the age you plan to retire, your living expenses in retirement, your potential healthcare costs, your lifestyle — in short, it can be difficult to project the amount you'll need. There are retirement tools and calculators out there, but this is one time when nothing beats the guidance of a professional retirement planner. They can help you take stock of what you have saved, help you project the amount you'll need to save, and help you stay on track.
One of the only constants in planning for your retirement is that it is different for everyone. No one has the exact same set of post-retirement considerations, so when you start planning for your retirement, you deserve guidance from an experienced retirement financial planner.
At Burton Wealth Management, we'll tailor a plan to your needs so that you and your loved ones can live comfortably after you retire. We'll constantly review the latest information, adjust to changes in the market, and make sure you can rest easy knowing your retirement fund is in capable hands. To get started, contact us today.
TBurton@BurtonWealthMgmt.com | (412) 749-0107