Planning for retirement is a life-long process, it's never too late or too early to start planning your retirement, but it is best to factor in planning for your retirement as part of your current financial plan. This way you can ensure that you have a safe, secure and have the retirement you intended it to be.
How Can You Get the Most from Your Retirement Plan?
- Know your company’s match formula and contribute enough to take full advantage of that match. Example: If your company matches 100% of the first 1% and 50% of the next 5% contributed. To get the full match, you would want to contribute at a 6% deferral rate.
- Know the difference between Traditional and Roth Deferrals and decide which may benefit you more. Ask you Retirement Plan Administrator if you are unsure.
- Don’t panic in a down market. Stay invested with your overall goals in mind.
Retiring Soon? Here Are Some Things You Should Consider.
- Taxes: Consider the taxes you will have to pay later on. Don't underestimate the amount of taxes you will need to pay in retirement.
- Security: If you are not feeling completely confident that you have taken the right steps to prepare for retirement, ask one of our experts in our Wealth Division. Retirement is something you only do once.
- Reduce Debt: Try and reduce your debt and not take on more.
- Practice Being Retired: Practice living off the annual amount you anticipate having when you retire. This will help you consider what living after your working years will really be like. This will also allow you to make adjustments before you actually retire.
Time is your most important resource. You can still work longer to cut expenses. Don can't panic if you aren't where you want to be right now. Seeking guidance in the last five years before retirement can help you achieve a more comfortable and secure life once you leave the workforce.