Retirement can sometimes feel distant. However, retirement is often closer than we think, and inadequate retirement planning can make it feel less like your golden years and an ambush. Still, understanding how to plan for retirement can be daunting. Fortunately, at Misers Wealth Partners, we offer premier financial advice tips for your unique retirement planning needs in Tennessee. We take the time to get to know you, your situation, and your goals to provide tailored strategies that ensure your golden years remain gilded.
Here are essential tips for retirement planning:
Understand your timeline.
When planning for retirement, one of the best financial advice tips is to understand your timeline.
Realistically determine your expected retirement age to create the groundwork for effective retirement planning. The further from today you plan on retiring, the more risk your portfolio can endure.
If you are young, strive to have most of your assets in riskier investments like stocks. While they are more volatile, they consistently outperform other securities over longer periods.
Also, plan for inflation and rising prices that minimize the buying power of retirement savings. However, the older you are, the more your portfolio should focus on income and preserving capital, and the less it should focus on inflation.
If getting a grasp of your timeline to devise a strategic retirement plan is difficult, at Misers Wealth Partners, we will get to know you and help you understand what your future looks like.
Evaluate your retirement needs.
Understanding your retirement needs is one of the most essential financial advice tips for retirement planning.
Experts estimate you need 70% to 90% of pre-retirement income to maintain your quality of life when you stop working. Set realistic expectations about your post-retirement spending needs. People often assume they will spend 70% to 80% annually of what they did before retirement.
This assumption is often untrue, especially with mortgages, children’s education, unforeseen medical expenses, general healthcare costs, splurging on travel or bucket-list goals, and basic living expenses. Also, consider your longevity.
People’s average lifespan continues to increase, so you do not want to outlive your savings. Lastly, have extensive conversations with your spouse or significant other about post-retirement expenses.
If evaluating your retirement needs is difficult, at Misers Wealth Partners, we can assess what you will realistically spend to help you live your golden years to the fullest.
Start saving and learn how.
One of the most essential retirement advice tips is to start saving now. Start small and increase the amount you save each month.
The sooner you start, the more time your money has to grow. Saving for retirement should be a priority. Create a plan, stick to it, set goals, and structure your savings habits, even if it means starting small.
We advise investing a minimum of 10% of your income for retirement. Also, know how your savings or pension plan is invested, learn about your plan’s investment options, ask questions, and diversify savings and investments to minimize risk and maximize return.
More importantly, do not touch your savings. Withdrawing retirement savings now reduces principal and interest, and you may even lose some tax benefits or pay penalties. Lastly, ensure to start a 401 (k) or 403 (b) and an IRA.
Schedule an appointment now to get started!
If you do not know how to secure your financial future and future quality of life, at Misers Wealth Partners, we are the premier financial advisor in Tennessee. We offer customized financial advice tips for retirement planning that take your situation and circumstances into account to help you achieve your unique goals. Our passion is buoying clients by helping them attain clarity and confidence in decision-making and their future. Schedule an appointment now!