Don't Rely on Luck in Retirement Planning

By in , ,
Don't Rely on Luck in Retirement Planning

St. Patrick’s Day is around the corner – and four-leaf clovers aside – banking on luck to retire well is a recipe for disaster.

It’s never too early to start planning for retirement. Millennials and Gen X-ers are on pace to out save the Baby Boomers. If you haven’t started contributing, maybe it’s because you don’t know where to start. Or, perhaps you’re already contributing to your plan and looking to add more to your retirement fund.

When planning for your retirement, it’s unlikely you’ll stumble upon the right amount of income to keep you happy throughout. So don’t leave it all up to luck. Here’s our three-step guide to taking charge on your financial plan for a happy retirement.

1. Ask Questions

If you’re just starting to save up for your retirement, you’ll probably want answers to questions like:

  • Which is better for me, a Traditional IRA or a Roth IRA?
  • How much will my Traditional IRA (or Roth IRA) be worth at retirement?

Or, if you’re closer to calling it quits at work, you’ll have questions, like:

  • How much do I need to fund my retirement?
  • How long will my retirement last?
  • How much can I spend each month in retirement?

You can start your research with financial calculators (which will help you estimate the level of monthly savings necessary to make it to retirement and can also help you predict how your investments can boost retirement returns.)

2. Get Help from a Financial Advisor

If you need help with investing and other financial planning, a financial planner may be the way to go. Understanding what it takes to fund your retirement is one thing. It’s another to actually put that understanding into action to start the savings and investments process. There are many potential benefits to hiring a retirement income advisor. They often have a broader, deeper knowledge of money management than you do. This is especially true when it comes to complicated money matters like investments and taxes.

A reputable retirement income advisor can help you figure out your savings strategies, retirement options and overall retirement plan. A professional opinion can be especially helpful toward the beginning of the retirement planning process, when you’re trying to set goals.

3. Monitor your Progress and be Flexible

Even the luckiest of people with the most scrupulous retirement plan can’t predict the many twists, turns and pitfalls you can run into on the road to retirement. Including:

  • Major market setbacks that can put a major dent in your account balances.
  • Periods of unemployment that may derail your savings process.
  • Health issues that might force you to dip into your savings.

This is why you’ll want to periodically re-assess whether you’re making progress toward a secure retirement and, if necessary, make adjustments to your plan along the way.

When it comes to your future, specifically your retirement plan, it may be all too tempting to leave it to fate. But there’s more to luck than meets the eye. Take some time to review your retirement savings plans, or talk to your income planning specialist to put your retirement plan into motion.

For more on planning your future, contact a retirement income specialist at CKS Summit Group here today.