This is the perfect time to get serious about planning for your future. This annual event was designated by Congress to focus attention on the importance of saving and provide tips for building stronger retirement plans. You can mark the occasion by making sure you are on track to support your retirement goals. Here are some steps to get started:
One rule of thumb is to contribute as much as you can now, then each year increase the percentage you put aside. Consider striving to eventually reach 10-15% of your pay. In 2014, participants can contribute up to $17,500 of their gross income; plus, workers age 50 and older can contribute an additional $5,500.
The more specific you are in estimating your spending needs in retirement, the easier it will be to meet them. It helps to develop a clear and realistic picture of your ideal retirement. Instead of treating your portfolio as a lump sum amount that you will spend down for as long as it lasts, think of it as a pool of assets that will ultimately generate a stream of income that stays with you throughout your retirement years. This requires planning for the amount of income you will need upon retirement.
One rule of thumb is to contribute as much as you can now, then each year increase the percentage you put aside. Consider striving to eventually reach 10-15% of your pay. In 2014, participants can contribute up to $17,500 of their gross income; plus, workers age 50 and older can contribute an additional $5,500.
Also, if your employer offers a match, build up to contribute at least enough to get the full match so you aren’t leaving “free money” on the table.
How much you are able to save for retirement or any other goal is directly related to how much you spend. Create a household budget that includes a monthly retirement savings amount.
Aldrich Wealth is here to help you protect and grow your financial assets. Please call us at 888-299-3102 if you wish to discuss your account.
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