For most people, sitting down to work on retirement planning is about as much fun as going to the dentist. But preparing for your golden years now can pay off down the line. Here are two crucial areas of the planning process:
Determining how much you need to save. A financial planner can help you figure out that magic number – the amount you should be trying to save for retirement given your income and financial obligations. This is a crucial step in retirement planning. Plan on an annual progress review.
Figuring out which types of retirement vehicles make the most sense. There are many different ways to prepare for retirement, depending on your age, your financial resources, and your debts and obligations. Say you’ve just started your first job and you’ve discovered that your employer offers a dollar-for-dollar 401(k) match. You’ll want to think about signing up and contributing at least enough to get those matching funds! Suppose you are in your 40s or 50s and you’re worried about outliving your savings in retirement. You may want to look into annuities.
Questions? An annual retirement checkup is a great time to get them answered!