Everyone wants to enjoy their retirement years, but not everyone knows how to properly save and invest in order to live comfortably in retirement. To help guide your retirement plan, we’ve compiled common retirement questions to delve into how to turn your retirement dream into a well-conceived plan.
Common Retirement Questions
When contemplating retirement, common retirement questions include how to save, how much to save, and how to invest. With retirement plans consisting of numerous investment options and complicated terms, it’s vital to know the answers to common retirement questions.
Whether looking to diversify your retirement investments, better understand your retirement accounts, or how to start a retirement plan, our answers to your common retirement questions provide a comprehensive explanation of how to better manage your retirement portfolio. Common retirement questions include:
- How Can I Find Money to Save for Retirement? With saving for retirement an essential for living comfortable later in life, finding additional revenue to save is vitally important. Creating a strict budget that eliminates unnecessary purchases and saving at least 10 percent of your income is a great way to save for retirement.
- How Much Should I Save for Retirement? The baseline that many financial advisors recommend saving is $1 million. While this is a substantial figure, proper planning and investing can help you reach your retirement goal. Moreover, where you live and who’s living with you will all impact how much you need to save for retirement.
- Should I Increase My Retirement Savings? No matter if the market is performing well or in a nosedive, it’s still important to continue saving during tough or prosperous economic times.Regardless of economic conditions, there are various investments that can shield your savings from the volatility of the stock market.
Source: Insured Retirement Institute
Answers to Your Retirement Saving Questions
Having a list of retirement savings questions to ask your financial advisor can help steer you on the right path to retirement. To help guide you on the right retirement savings questions to inquire about, we’ve answered the most basic retirement savings questions:
- Should I Reach my Employer 401(k) Match? Yes! By taking advantage of your employer’s match in your 401(k) plan, you receive ‘free money’ that can help increase your retirement savings.You may even want to consider allocating more of your paycheck beyond an employer match to help increase your tax-free savings.
- How Will Taxes Impact My Savings? Withdrawing from traditional IRA and 401(k) plans can incur Federal and State taxes. When calculating your savings, it’s vital to know that your retirement income is also taxed similar to how earned income is taxed while working.
Questions About Retirement Planning
Retirement planning is something to look forward to and delving into questions about retirement planning can help set you on a plan to financial success once your career has ended. Questions about retirement planning should be considered well before you reach retirement age. Questions about retirement planning include:
- Should I Save for Retirement or My Child’s Education First? Both retirement and paying for collegerequire financial planning and savings. While helping your child pay for college is a nice luxury, saving for retirement will help prevent you from becoming a burden to your family later in life.
- Can I Plan for Retirement Without Investment Knowledge? Never let the complication of retirement savings deter you from saving and investing your hard-earned income. Learning the basics of retirement planningcan help guide your retirement plan down a path best suited for you. Talking with a financial advisor can also help inform you on how to properly invest your income.
Questions to Ask Before You Retire
Congratulations, you’re on the verge of retirement, but there are still questions to ask before you retire. Questions to ask before you retire involve post-work income, health insurance coverage, and how long do you plan on living in retirement.
By tackling these questions to ask before you retire, potential retirees can better plan their post-life career in order to live comfortably after retirement for decades. Questions to ask before you retire include:
- Have you calculated your life expectancy? With the majority of 65-year-olds expected to live into their 80s, planning for just 10 years of retirement is no longer a viable option. Make sure your income is calculated to help you live comfortably for up to 30 years past your retirement.
- Will I Have Social Security? Americans are still entitled to receive Social Security checks at the age of 65 or possibly before, but those benefits can shrink or even be eliminated for future generations. Make sure you qualify for Social Security before considering it part of your post-career income.
- Will I Have Health Insurance?The majority of Americans will receive Medicare health insurance once they reach the age of 65. However, you still have to apply for coverage, and you may want to consider purchasing supplemental insurance to help cover costs of unexpected medical treatments.
Source: Insured Retirement Institute
To help ensure your questions about retirement planning are answered properly, make sure to consult a financial advisor, like Matt Logan, who can help grow your savings effectively.
Matt Logan is experienced with answering retirement saving questions for his clients. If you need help with common retirement questions and strategies that will fit your finances and lifestyle, don’t hesitate to reach out to Matt Loganto see how he can help you and your family. Give a call today: 336-540-9700.
Matt Logan Inc. is an independent firm with Securities offered through Summit Brokerage Services, Inc., Member FINRA, SIPC. Advisory services offered through Summit Financial Group Inc., a Registered Investment Advisor. Summit Brokerage Services, Inc., its affiliates and Matt Logan Inc. do not give tax or legal advice. You should consult an experienced professional regarding the tax consequences of a specific transaction. These are the views of Matt Logan Inc, and not necessarily those of Summit Brokerage Services, Inc. and any of its affiliates and should not be construed as investment advice.