What is retirement planning?


Retirement planning can feel overwhelming. You’ve probably heard experts say you need at least $1,000,000 to retire comfortably. Just how are you supposed to get that much money before age 65?

Retirement planning is simply calculating at what age you want to retire and how much money you’ll need to live on each year. Once you have that number, work backward to figure out how much you need to save per year to meet your goal. There are many online calculators, like this one at AARP, that can help you determine how much you need to save. If you need more help, qualified financial professionals can guide you through the planning process.

Why should I save for retirement?


Unless you have a large fully vested pension plan with your employer, you need to save for retirement. Gone are the days where workers could rely on social security and a pension to live out their golden years. Most people will need a combination of social security, savings and investments to fund their retirement. However, the future of social security is uncertain. It’s not smart to rely on the government to fund your retirement.

Having money saved for retirement can offer you great peace of mind. Think about how you want to spend your retirement. Do you want to travel? Are you looking to work a side hustle of your own or pick up a part-time job? Do you want to be able to spend more time with your family? Knowing your priorities can help you figure out how much you’ll need to comfortably retire. This can also provide the motivation to sock that money away each month.

How can I manage my retirement planning?


How you should manage your retirement plan depends on your age and financial situation. There are many different vehicles for saving for retirement. Some of the most popular are a 401(k), IRA, a taxable investment account and real estate. You can start saving for retirement by just having a small amount transferred every month to your 401(k) or investment account. Increase that amount little by little, and then watch your savings grow over time. Generally, the further away from retirement you are, the more risk you can take. As you get closer to retirement, you may choose a more conservative portfolio.

Finally, consider working with a financial planner or investment advisor. These professionals can help you develop a retirement plan. Once your plan is in place, your advisor can also help make sure you stay on track to meet your retirement goals.

Discover professionals in our network


Finding a professional in your area to help you improve your personal finances is another excellent step on your journey to create wealth, financial freedom and stability. A professional, such as an investment advisor or financial planner, has first-hand knowledge and experience with retirement planning. These professionals can answer any questions that you may have regarding your unique circumstances and help you customize a strategy that will best fit your financial needs.

Explore our personal finance insights


Looking to learn more about retirement planning? Immerse yourself in our insights that focus in more detail on how to better understand, manage and improve your personal finances.

 


Ready for retirement planning? Managing your retirement planning can feel overwhelming. Where do you start? How much should you save? What should your portfolio contain? How you should save for retirement depends upon many factors. Your age, net worth, goals and risk tolerance all come into play. In addition, there are many different vehicles for…