Your approach to retirement planning is as individual and unique as you are right now. When you begin making financial plans for retirement, whatever your age, it’s human nature to zero in on obstacles and get tangled up with details.
Let’s look at some challenges you face, where you may be in your planning, and some great assets you have you may not know about, and how to best use them.
Retirement Comes, Ready or Not…
Children born today in the developed world have over a 50 percent chance of living past the age of 100 and the Social Security Administration tells us that 1 out of every 4 65-year-old Americans can expect to live past age 90.
That’s a lot of retirement time to look forward to, and you’ve got the option to begin making plans and taking control right now, whatever your age.
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- When you’re under thirty, retirement is barely on your radar. Student-loan payments, entry-level job salaries, and uncertainty of life goals have left many younger people not yet ready to think about 50 years down the road. A recent national poll reported that retirement and financial planning rated within the lowest group of concerns and priorities—Other at 2%.
- By the time you’ve made it to forty, retirement is often overshadowed by debt and responsibilities, and just making ends meet sometimes feels impossible.
- When you hit sixty, retirement begins looking like a project you’ve put off too long, and you don’t know where to begin. A third of Baby Boomers currently in, or approaching retirement age, have nothing or less than $25,000 set aside.
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re·tire·ment
/rəˈtī(ə)rmənt/noun
“the action or fact of leaving one’s job and ceasing to work. giving up work, stopping work; withdrawal from one’s position or occupation or from active working life.”
Making Your Way to Retirement
A 2018 study by Northwestern Mutual reports that 21% of Americans have no retirement savings and an additional 10% have less than $5,000 in savings. The Federal Reserve’s Survey of Consumer Finances’ most recent retirement account figures, without factoring in figures for accounts that don’t exist, show:
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- For people under 35, the average retirement account is $32,500, with the median being $12,300
- For people between 45 and 55, the average retirement account is $215,800, with the median being $82,600
- For people between 65 and 74, the average retirement account is $358,000, with the median being $126,000. For these households, account begin to decline as people leave the workforce and begin spending their savings.
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With a possible 20-to-35-year retirement to plan for, you may be wondering what you can possibly do to make a difference. Start with a dream. The sooner, the better.
Discover Your Hidden Assets
When you begin planning your retirement, you’ll discover that you have some assets you may not have considered. Here are some assets and liabilities you may have overlooked:
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- For those under 30, the one fleeting asset you have is also the best reason to start your retirement planning now. You have the benefit of time for long-term investing. It’s music to your ears… time is on your side, and you have energy and strength. These finite assets are highly prized and valuable.
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- My advice? Use your greatest assets, time and strength. Control the natural tendency to procrastinate.
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- By the time you’ve made it to 40, you’re entering peak years of earning power. A recent PayScale study reports that by age 41, college-educated women see their salaries peak at about $61,000, while mean continue seeing increases up until age 53, with peak earnings of about $95,000. If you’re among the 21% of Americans without retirement savings, or you haven’t hit the median of $82,600, now is the time to buckle up, make your plan, and get going!
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- My advice? Put these years of your greatest earning power and determination to good use. Control distractions and debt.
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- When you hit 60, you’ve got something those whippersnappers don’t have yet. You’ve got the wisdom of a lifetime telling you to take control, make some changes, and make up for lost time. Social Security now covers less than half of an average retiree’s cost of living, and with about ten years available, you’re ready to get this show in the road, make your plan and start making a difference.
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- My advice? Use wisdom and focus on the goal. Accentuate the positive, eliminate the negative.
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- For those under 30, the one fleeting asset you have is also the best reason to start your retirement planning now. You have the benefit of time for long-term investing. It’s music to your ears… time is on your side, and you have energy and strength. These finite assets are highly prized and valuable.
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Controlling Longevity Risks
For your peace of mind, we’re by your side.
Ready to get started on your retirement plan or review your existing plan and bring it up to date? Let’s do it!
Together, we’ll build a comprehensive plan that will manage your wealth and assets throughout your life and transfer to your beneficiaries safely, efficiently, and with minimal tax liabilities.
We’ll take care of you.
Call us: 734-285-6008