Planning for your retirement - it's never too late to start!

Retirement planning is a necessary, but often neglected part of your financial future.  When you start off in your early years (18-35), you are often consumed with the activities of daily living and retirement seems very far away.

In your middle years (35-55), you are just as busy as in your early years, but now you are often dealing with children in school, saving for college years, and possible still paying for student loans. Retirement may still be the last thing on your mind!

As you approach your retirement years, you are hoping to arrive at this proverbial place with debt paid off, money in the bank and a feeling you will be fine now and 30 years into retirement.

At Bogetto & Associates, we have the tools, services and expertise to help you work towards YOUR retirement goals and we are GREAT listeners. Whatever stage of life you and your family are in, we have answers that may help you work towards achieving your short and long term retirement goals.

Many people come to us at 55 when we can still provide answer for a healthy retirement. 401k, IRA,and investments will be your basis for retirement. Social Security needs planning to make sure you are taking advantage of the best way to maximize this benefit. During the planning stage we will show you how to set aside assets for the first year of retirement and for the next 10 years. We will also develop a strategy to handle planning for age 70 and beyond working towards supplementing your income for 10 years or longer.

Here are some ideas that you may want to consider when planning for retirement

(Source:  http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html)

Facts

• Fewer than half of Americans have calculated how much they need to save for retirement.
• In 2014, 30 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate.
• The average American spends roughly 20 years in retirement.

1. Start saving, keep saving, and stick to your goals

If you are already saving, whether for retirement or another goal, keep going! You know that saving is a rewarding habit. If you're not saving, it's time to get started. Start small if needed and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow (see the chart below). Make saving for retirement a priority. Devise a plan, stick to it, and set goals. Remember, it's never too early or too late to start saving.

2. Know your retirement needs

Retirement is expensive. Experts estimate that you will need at least 70 percent of your pre-retirement income – lower earners, 90 percent or more – to maintain your standard of living when you stop working. Take charge of your financial future. The key to a secure retirement is to plan ahead.

 

3. Contribute to your employer’s retirement savings plan

If your employer offers a retirement savings plan, such as a 401(k) plan, sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, compound interest and tax deferrals can make a big difference in the amount you will accumulate. 

4. Learn about your employer's pension plan

If your employer has a traditional pension plan, check to see if you are covered by the plan and understand how it works. Ask for an individual benefit statement to see what your benefit is worth. Before you change jobs, find out what will happen to your pension benefit. Learn what benefits you may have from a previous employer. Find out if you will be entitled to benefits from your spouse's plan.

5. Consider basic investment principles

How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you'll have saved at retirement. Know how your savings or pension plan is invested. Learn about your plan's investment options and ask questions. Put your savings in different types of investments. By diversifying this way, you are more likely to reduce risk and improve return. Your investment mix may change over time depending on a number of factors such as your age, goals, and financial circumstances. Financial security and knowledge go hand in hand.

http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html

6. Try not to touch your retirement savings

If you withdraw your retirement savings now, you'll lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings invested in your current retirement plan, or roll them over to an IRA or your new employer's plan.

7. Put money into an Individual Retirement Account

You can put up to $5,500 a year into an Individual Retirement Account (IRA); you can contribute even more if you are 50 or older. You can also start with much less. IRAs can also provide tax advantages.

When you open an IRA, you have two options – a traditional IRA or a Roth IRA. The tax treatment of your contributions and withdrawals will depend on which option you select. Also, the after-tax value of your withdrawal will depend on inflation and the type of IRA you choose. IRAs can provide an easy way to save. You can set it up so that an amount is automatically deducted from your checking or savings account and deposited in the IRA.

8. Find out about your Social Security benefits

Social Security pays benefits that are on average equal to about 40 percent of what you earned before retirement.  For more information about your social security benefits, go to www.ssa.gov.  

9. Ask Questions

Find a financial adviser that you trust, ask questions and make sure you understand the answers. Get practical advice and act now.  The financial planning advisers at Bogetto & Associates are here to answer your questions!

Financial Health...For Now & Tomorrow

Contact us Today

Website - www.bogettoandassociates

Telephone - 314-858-1602

Email - peter@bogettoandassociates.com

10805 Sunset Office Drive, Ste. 202

St Louis, MO 63127

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Securities offered through First Heartland Capital, Inc. Member FINRA/SIPC

Bogetto Financial is not affiliated with First Heartland Capital, Inc.