Keys to Successful Retirement Planning

1) Save early and often

The power of compound interest allows us to save large enough sums of money to provide income throughout retirement. It’s much easier to start early and save a small amount per month than to start late and play catch up. As the graph to the right shows, the earlier you save, the longer compound interest works in your favor. If you’re starting late, don’t worry. The best time to start may have been yesterday, but the second best time is today. To discuss your retirement plan with me, book an appointment.

2) Don’t rely on the government

Hopefully social security will be there when you retire, but it’s far from a guarantee. It’s likely benefits will be reduced in some fashion in the coming years.

3) Take advantage of retirement accounts that allow you to defer taxes, including 401(k)s, 403(b)s, and IRAs.

Contribute to tax advantaged accounts as much as you can, or up to account limits to grow your money tax deferred.

4) Auto-Pilot your retirement savings

Have money taken from your paycheck and invested before it’s deposited in your bank account. Successful retirement planning requires protecting yourself from yourself. This process can make you an automatic millionaire.

5) Accept that you will want to retire and plan for it

Many younger people assume they will never want to retire. Things have a way of changing after you work the same job for decades. Save and plan for your retirement.

Retirement Savings - $500 per month