Basic questions about retirement planning
As we have noted in our prior posts, retirement planning is an important aspect of estate planning, since more Americans are going to be depending on their retirement income (excluding Social Security) as they reach their golden years. But the overriding questions to being able to retire in one’s fifties and sixties can be determined on how their investments are structured.
But answering these questions are not always simple. There are several unknown elements to be navigated, including a person’s health, the health of loved ones (such as a spouse or child) and the volatility of the stock market. Even considering these unknowns, there are a few principal questions that you should know the answers to. This post will highlight them.
How much should I have saved to retire? – Typically, you should have assets that equal at least 10 times your annual income before stepping away from your job. This means that if you make $60,000 per year, you should have at least $600,000 saved.
Is it too late to save for retirement? – Generally speaking, it is never too late to save for retirement. However, depending on how you want to save, and what you envision retirement to look like, your savings patterns may have to change.
Where should I put my money? – There are a plethora of investment options, including an employer sponsored 401k or 403b plan, or an individual IRA or Roth IRA. However, you should be cautious about putting money into other business ventures, such as a consulting business that you hope to sell for a profit.