The things you see yourself doing when the workday no longer belongs to someone else. The places you picture yourself exploring. The people you intend to spend it all with. If you can imagine the way you want to retire, you can plan for it.
With employer pensions on the decline and uncertainty surrounding Social Security, retirement planning is more important than ever. At Zenith Growth Investments, we can help you understand how much you will need to retire the way you want, and develop an income strategy to get you there. We will look at your expenses, priorities, and goals and help you put your money to work.
Where can retirement income come from?
Beyond traditional investments, here are some more places where you can find money for retirement:
- Put money away now, for income later, with annuities.
- Aside from keeping your loved ones’ financial future in view, you can use living benefits from a whole life insurance policy after you stop working.
- IRAs and an employer’s 401(k) plan are ways to save for retirement today.
When should I start saving for retirement?
While having a 401(k) or IRA is a start, a financial plan looks at the income you have coming in and the amount you will need to supplement. The earlier you start planning, the longer you have to build savings. Even if you plan to retire in the next year or two, there is time to get prepared.
Social Security Administration, 2017: “31% of American workers have no savings set aside specifically for retirement.”
Put time on your side
We often hear about the importance of starting early to save for retirement, but it is hard to visualize the difference. Regardless of the rate of return, as long as it is greater than zero, a person who only saves from ages 25 to 35 can have considerably more money by age 60 than the person who saved from ages 35 to 60. Thanks to compounding, you can end up with more money after saving for fewer years, as long as you start earlier.