If you’re coming closer to the retirement date you envisioned but haven’t been able to save anything toward it, you’re not alone. According to financial gurus, this is a pretty frequent circumstance.
“I believe it’s almost taboo to talk about it,” says Cory Phillips, a financial advisor at Fort Pitt Capital Group in Pittsburgh who helps clients plan for and live in retirement. According to Fidelity, the average retirement account for persons in their 50s is $160,000. However, one out of every four individuals does not have any retirement savings.
Saving for retirement is a form of delayed pleasure, which is a tough idea to grasp, especially when the payoff is decades away. So there’s no shame in struggling with it, and failing to save in the past isn’t a cause to abandon your retirement goals entirely.
If you’re wanting to prepare for retirement, there are a few basic actions you can do.
Begin saving and take advantage of compound interest
There’s still plenty of time for your money to grow in a retirement account like an IRA or an employer-sponsored plan like a 401(k) or 403(b) if you have around a decade till retirement (b). According to experts, investing in stocks and bonds may double your money in as short as seven to ten years, so deposit as much money as you can into such accounts as soon as you can.
In 2021, you may contribute up to $19,500 to your 401(k), and if you’re 50 or older, you can take advantage of catch-up contributions, which enable you to contribute an extra $6,500 this year.
Deferring Social Security benefits is a good idea
Delaying Social Security is one of the finest and most straightforward strategies to boost your retirement income. Consider working part-time to offset expenditures until you reach retirement age. Although staying in the employment as you become older might be challenging, Parrish advises that you do so if at all feasible, “because that will produce more than simply saving some more money,” he adds.
The longer you wait to claim Social Security, the more money you’ll get. For those born in or after 1960, full retirement age is 67, but waiting until 70 will pay you up to 134 percent more than you would have gotten just a few years earlier.
Consider your most significant monthly costs and how you may cut them. If you have more space than you need, consider downsizing. Americans spend the biggest percentage of their monthly budget on housing at the start of adulthood and in their older years; consider reducing if you have more space than you need.
If you like living with others, try if younger family members would be willing to come in and contribute financially; you may also see if your town or city has a roommate program for seniors. Programs like this have been successful in New York City, San Francisco, and other cities.
We Can Assist You
It’s easy to feel overwhelmed when you’re a parent. Unexpected costs creep up on a daily basis, on top of all you’ve already done to guarantee your retirement and your child’s education.
Are you trying to find an investment advisor? Look no further than Soutas Financial & Insurance Solutions Inc. your Fresno financial planner is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax-Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.
We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!
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Fresno, CA 93704
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc. are not affiliated companies. California Insurance License # OK48173. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 2/22 – 1202193