Ric Komarek, CFP
  • Home
  • Blog
  • About
  • Contact Us
  • Mission Vision Values
  • Elements
  • Financial Wellness Score

7 Ways to Stay on Track and Meet Your Retirement Goals

8/10/2021

0 Comments

 
Are you on track to retire comfortably? What are your financial goals? How much income will you need to generate each month when you've retired? What might be some of your longer-term goals that take a large pool of savings to accomplish? 

Our regular check-ins are designed to measure progress toward your goals, making adjustments as life’s journey unfolds.  Saving for retirement is a long game; It’s a marathon. You could compare it to the fable The Tortoise and the Hare. A sprint won’t get you to your destination. Slow and steady wins the race. 

Unfortunately, ​75% of Americans receive no professional assistance for this long haul. In my view, that’s unacceptable. It leaves far too many folks exposed to the many financial pitfalls that are lurking around the corner. As Ben Franklin said, “If you fail to plan, you are planning to fail!” 

Fortunately, you do have professional support and a plan in place. Following are seven ideas that I encourage on a regular basis. You have already implemented many of these concepts; others you may want to do more with as we move into fall.  And they are all excellent reminders of what keeps  you on the path toward financial independence.

1. Set goals. Too many people simply guess what they will need in retirement, and many don’t have a written plan to reach what goals they have set. Others simply don’t have any goals. If you don’t have goals, you’ll drift, financially speaking. 

2. A comprehensive and holistic financial plan is a must. While regular savings is important, a roadmap that takes you to your goals is critical. 

Did you know that if you start saving $600 per month at age 30, you will have $1 million when you turn 65, assuming an average return of 7% per year.

If you start saving at 20, $300 per month will allow you to hit the same goal.

I'm not saying that $1 million is the magic number, but the example highlights that consistency, starting early, and the magic of compounding can help you reap big rewards.

I assist you by using a diversified portfolio that generally includes safe and risk assets. While much work goes into the individually crafted plans I recommend, no small part of what I recommend is based on the evidence that long-term exposure to stocks has outperformed simple savings accounts. 

3. Never stop saving. After paying for housing, food, and other expenses, are you able to consistently save money? A survey by Bankrate suggests that one in five Americans aren’t saving anything, and only one in six save over 15% of their income. 

Why aren’t we saving? According to the survey, 38%  of working Americans have too many expenses. For example, on average Americans shell out more than $2,900 a year on restaurants, prepared drinks, and lottery tickets.

I'm not saying that a spartan existence that eliminates fun and entertainment is the path to take. Instead, examine your expenditures closely. You might quickly find ways to cutback while still enjoying life’s pleasures. And consider paying yourself first when you receive your check by setting up an automatic payment into savings.

4. Retirement savings is a key component. If you want to stay on track for retirement, the importance of regular contributions to a retirement fund is critical ​Employee 401(k) contributions for 2021 top out at $19,500, with an additional $6,500 catch-up contribution allowed for those that are 50 years or older. At a minimum, don’t leave any free money with your employer. Be sure to contribute what you need to receive your employer’s full match.

For 2021, you may contribute up to $6,000 to an IRA or Roth IRA ($7,000 if you are 50 or older). Just be aware that the IRS imposes various limits based on your income. I'd be happy to share additional details, or you may check with your tax preparer.

5. Did you get a new job? Congratulations. As you look at benefits, how quickly can you start contributing to your company’s retirement plan? 

Plus, don’t forget about your prior 401(k) plan. Roll it into an IRA or into your new 401(k). Unless there is an extraordinary circumstance (and we’re not talking about a new TV or a vacation), don’t fritter away your retirement assets. Withdrawals from these tax-deferred plans will probably be subject to taxes and penalties if taken early.

6. Get out of debt today. Some debt can be productive. For example, a mortgage allows you to purchase a home and build equity instead of renting. But in many cases, debt can be a burden. 

Your student loans helped you pay for college. Although the situation with student loan debt is fluid, this is debt that’s best paid off. Credit card debt also falls under the unproductive category. Besides, many come with high interest rates.

7. Check in with Social Security. www.ssa.gov has a decent amount of resources. It’s a good idea to check in online and make sure there has been an accurate accounting of your annual income. If your income is understated, your benefits will be shortchanged.

Our goal is to help you replace a substantial portion of your income when you leave the workforce. How much will depend on your goals and what you may want to do in retirement.

These ideas are a great place to start, putting you and keeping you on track for your retirement.
0 Comments



Leave a Reply.

    Archives

    December 2022
    November 2022
    August 2022
    July 2022
    April 2022
    January 2022
    December 2021
    November 2021
    August 2021
    July 2021
    June 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    August 2015
    December 2013
    November 2013
    October 2013
    June 2013
    May 2013
    April 2013
    March 2013
    January 2013
    December 2012
    August 2012
    May 2012
    April 2012
    October 2011
    August 2011
    July 2011

    Categories

    All
    401k
    College
    Economy
    Estate
    Financial
    Health Care
    Insurance
    Investing
    IRA
    Life Insurance
    Long Term Care
    Market
    Medicare
    Politics
    Quarterly Market Review
    Retirement
    ROTH
    Saving
    Schwab
    Social Security
    Taxes

    RSS Feed

ABOUT RIC

Ric is a CERTIFIED FINANCIAL PLANNER and investment advisor. Click here to learn more.

LEARN MORE

Blog
Contact
​Voicemail
​

FOLLOW RIC

  • Home
  • Blog
  • About
  • Contact Us
  • Mission Vision Values
  • Elements
  • Financial Wellness Score
Facebook Chat Widget by Digital Inspiration