How to Plan for a Successful Retirement
- Erik James Roberts, Founder & Chief Investment Officer | Infinitus Wealth Management
- May 7, 2022
- 4 min read
You might be looking for ways to improve your day-to-day life quality in your life. Eating well, for example, is a great way to maintain your health and continue living a quality life. Have you ever considered that you can apply the same idea to your financial future? There is just as much of an opportunity to create healthy habits now to help you in terms of long-
term financial health. That’s why we wanted to share a few tips with you on planning for a successful retirement.
While it may be easy to contribute to your employer’s retirement plan and feel you’re doing enough, you may not be taking advantage of strategic ways to help ensure a healthy nest egg for retirement. Once you’ve walked through these four basics, reach out to a financial advisor at Infinitus Wealth Management to begin crafting a comprehensive strategy to maximize your retirement account.
DETERMINE YOUR RETIREMENT GOALS
To save for retirement, you first have to determine your retirement goal. A good rule of thumb is allotting 75%-80% of your current yearly income for annual living expenses after retirement. It would help if you also considered the age you’d like to retire. Keep in mind that while housing and family care costs can go down after retirement, healthcare costs can go up.
It’s also worth considering what you want your retirement years to look like. If there are specific milestones you’d like to reach, such as paying off a home or establishing a trust, or buying a boat, these goals should also factor into your total retirement savings. In addition, a financial advisor can help you reflect on both your financial needs and your financial dreams to determine an appropriate numerical goal for retirement.
CALCULATE YOUR ESTIMATED ANNUAL INVESTMENT AMOUNT
Once you’ve outlined your general retirement goal, it’s time to get granular by determining your necessary yearly savings amount. First, map out your monthly, quarterly, and annual living expenses. Then, when compared to your annual income, how much of a remainder do you have that could be placed in an investment portfolio? Finally, it would be best to consider savings in an investment account or an employer-sponsored retirement account.
Chances are, you already have some savings towards retirement, so definitely include those funds while calculating your goals. For ease of calculation, multiple online calculators can help you determine a ballpark figure, but a personal advisor can help you settle on an even more specific number.
DIVERSIFY YOUR INVESTMENTS
Retirement savings can be placed in an IRA, a Roth IRA, a 401(k), or another pension plan. How do you know which retirement account type is right for you? This decision is often partially pre-determined by the type of retirement plan your employer offers. For example, many employers may offer retirement fund matches, where they will invest an additional amount based on an employee’s contribution.
Since many employer-offered retirement plans are also pre-tax, investing a large portion of your retirement savings into that account may be suitable. However, you can also use additional options to diversify your investments. In addition, diversification can provide confidence in your retirement savings.
For instance, if your employer offers a traditional 401(k) savings program, you can also set aside additional funds (up to $6,000 in 2022) in an IRA or a Roth IRA account. Placing even small amounts into a secondary retirement plan can give you more options, flexibility, and control over your retirement savings.
FIND A FINANCIAL ADVISOR YOU TRUST
While online tools and articles can offer you insight into retirement strategies, DIY research can’t compare to an intentional discussion with an experienced Financial Advisor at Infinitus Wealth Management. Since every individual’s retirement goals are different, a reputable financial advisor can provide you with options, ideas, feedback, and reviewing as you plan for your future.
For retirement, you want to have an investment portfolio designed to provide a solid return regardless of the strength of the market. A financial advisor can also help you plan your disbursement schedule. Most retirees should withdraw around 4% of their retirement savings per year. However, this may differ depending on your situation.
READY TO MEET WITH A INFINITUS WEALTH MANAGEMENT FINANCIAL ADVISOR FOR RETIREMENT GUIDANCE?
Preparing for the future is too important to leave to chance. At Infinitus Wealth Management, we encourage you to ask any questions you might have, and we will do our best to provide thoughtful and helpful answers. We will work together to decide on a strategy to enhance your retirement savings drastically. Today, take the first step by meeting with an advisor for a retirement readiness assessment.
At Infinitus Wealth Management, we offer a complimentary, no-obligation portfolio review for investors who want an independent fiduciary second opinion on how their capital is actually being managed.This is a conversation, not a sales process. If your portfolio is already well constructed, we will say so directly. If we identify avoidable costs, unnecessary concentration, tax inefficiencies, or portfolio structure that may be working against you, we will show you specifically where those issues exist. From there, you decide what to do with the information.
Important Disclosures
Infinitus Wealth Management is a registered investment advisory firm. This article is provided for educational and informational purposes only and does not constitute investment, tax, legal, or accounting advice. It is not an offer or solicitation to buy or sell any security or to enter into any advisory relationship. Any references to specific strategies, withdrawal rates, tax provisions, or historical figures are general in nature and may not be appropriate for any individual investor.
Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. Tax laws are complex, change frequently, and have unique application to individual circumstances; please consult a qualified tax professional regarding your specific situation. Social Security rules, Medicare rules, and retirement account regulations are subject to legislative and regulatory change.
The information in this article was believed to be accurate at the time of writing but is not guaranteed. Readers should consult with their own qualified advisors before making any financial decisions specific to their situation.
