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We wonâ€™t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Donâ€™t settle for average. You deserve excellence.
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Planning for Retirement: Decades and Differences
A Brief Summary of the Changing Seasons of Planning for Retirement
Planning for retirement looks different for everyone, and those differences widen when you consider the various decades of life. Here is a look at how retirement planning changes during different seasons of your life:
The Roaring 20s
Itâ€™s important to get started with your investments early, and compound growth is something that should entice the interest of a 20-something. Compound growth is the gain on top of your previous gains. These snowball over the years and work to your advantage.
The 401(k) is the most common investment vehicle, but you can also consider IRAs. Talk to your investment advisor to put together a plan that is the right fit for you.
30-Somethings: Hereâ€™s to You
Many investment strategies focus on buckling down when youâ€™re in your 30s, putting away as much as possible while youâ€™re freeing yourself of debt you might have accrued from college or from â€ślearning the ropesâ€ť about credit in your 20s.
Some 30-somethings are heavily invested in stocks. This gives them the chance to maximize their savings. Even if the market is volatile, stocks may be a viable option, because in the long run, the ebb and flow of the market can eventually pay off.
For the 40s â€¦
Did your salary increase while you were in your 40s? Thereâ€™s a good chance your spending followed suit. Itâ€™s vital that while in your 40s, youâ€™re not building up bad debt, which means staying disciplined and on budget is a must.
Itâ€™s in the 40s that many will begin saving for their children, and/or setting aside money for renovations to a home and other projects. However, itâ€™s important not to borrow against your retirement savings for any kind of project. In fact, itâ€™s in your 40s that you may begin in earnest to make bigger contributions to your retirement funds.
Hitting 50. Now What?
If youâ€™ve taken a closer look at what youâ€™ve saved and begun to panic that youâ€™ll never have enough to retire at age 65, you can increase your savings rates even higher now, as once you hit age 50, many retirement accounts allow a special â€ścatch-upâ€ť contribution.
You may consider talking with your advisor more often as you approach retirement to ensure that your investments are properly aligned with your retirement needs and goals.
Arriving at Retirement â€¦ Or Not Yet.
Hitting 60 makes retirement feel like a reality, finally. Now is the time to make final adjustments with a more accurate look at your current finances and how what your lifestyle will resemble once you arenâ€™t working.
However, many workers choose to continue working longer, realizing they may live several years longer than originally planned. Or they choose to semi-retire, leaving a full-time position for a flexible or part-time one.
This is an important time to talk in detail with your advisor about stocks (how many to keep, what the ratio might be, etc.). Also, talk to your investment advisor about how youâ€™ll handle your Social Security filing, because there are ways to maximize that source of income. Itâ€™s not a â€śsignand doneâ€ť kind of benefit. In fact, you may be surprised to learn of different options and the outcomes for each of your decisions related to Social Security.
At Family Investment Center, weâ€™ve assisted clients in every stage of life with planning for retirement and the life changes that happen along that journey. Contact us today and letâ€™s talk about what matters most to you.