When it comes to putting away money for retirement versus paying for immediate financial needs, unfortunately, building a nest egg can fall by the wayside. With a few realistic and proactive steps, though, saving for your future is possible.
Modern Woodmen | Scott S Paterick CLU CHFC in Wisconsin Rapids, WI, is a financial advisor who specializes in creating customized retirement plans. Below, he answers some of the most common questions regarding retirement and the right way to save for the future.
FAQs About Saving for Retirement
Which Strategies Will Work for Me?
You can start small by having a certain amount of money automatically transferred into a savings account from each paycheck. An employer-sponsored 401(k) is another good retirement strategy, particularly if your company matches the amount you contribute. Individual retirement accounts and Roth IRAs are also good savings tools that come with beneficial tax incentives. An experienced and licensed financial advisor can provide guidance on selecting investments and securities as well.
How Much Should I Save?
There are a number of formulas to determine how much you’ll need to live comfortably during retirement. One good calculation aims for a percentage of your annual income. To get an idea of how much you should save, take what you earn each year and multiply it by 10% to 15%. Another formula multiplies your annual salary by 10.
What About My Existing Debt?
Paying off credit card balances, student loans, and other debt will certainly help increase the amount you can devote to saving for retirement. Even if you have a large amount of debt to pay down, as your balances get smaller, you can start boosting your contributions toward your 401(k), IRA, and savings account.
How Can Financial Planning Help?
Financial planning takes a thorough look at your personal finances to develop a comprehensive plan for setting and reaching individual retirement goals. Milestones are tracked along the way, and adjustments can be made to accommodate any lifestyle changes that affect your income.
Saving for retirement doesn’t have to be an overwhelming task. Modern Woodmen | Scott S Paterick CLU CHFC has extensive knowledge in creating personalized plans so that savings will last throughout retirement. To get started on your retirement plan goals, call (715) 424-1873 or visit the website to schedule a consultation.
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