Planning for your Retirement

For some, retirement might seem like a distant event, for others, it may be sneaking up on you rather quickly. Regardless of where you fall, we are going to dive into retirement and ways you can prepare for your future.

When should you start planning for retirement? The short answer is: as soon as possible. The earlier you start planning for retirement, the more time you have to save and invest, and the more you can take advantage of compound interest. Compound interest is the interest you earn on your savings, which in turn earns more interest over time. The longer your money has to compound, the more it can grow.

Ideally, you should start planning for retirement as early as possible. Putting it off can cause rushed choices to be made. We all know why planning for retirement is important but how do you even start?

Here are some steps you can take to start planning for retirement:

1. Set retirement goals: Think about what you want your retirement to look like, and how much money you’ll need to fund it. This will help you set a retirement savings goal.
2. Create a retirement savings plan: Create a plan to save for retirement, including how much you need to save each month and what types of investments you’ll use.
3. Start saving early: The earlier you start saving for retirement, the more time your money has to grow. Even small contributions can make a big difference over time.
4. Invest wisely: Consider investing in a mix of stocks, bonds, and other assets to help grow your retirement savings over time. I also recommend you consult with a financial professional about this.
5. Monitor your progress: Keep track of how much you’ve saved and how your investments are performing. Adjust your retirement plan as needed to stay on track.

If you’re closer to retirement, you may be curious about what you should start doing just prior to the big day. If you fall into this boat, you should be seeking advice from a financial professional.

1. Determine your retirement goals: Think about what you want to achieve during your retirement years, whether it’s traveling or simply relaxing at home. Then, create a plan that works towards fulfilling these goals.
2. Get a Financial Advisor: At least a year prior, reach out to a financial professional. Let them help you get your ducks in a row. A financial professional can help you develop and execute a retirement plan that works for your unique situation. A plan should be put in place that takes into account what your goals are.
3. Learn about social security: The advisor you meet with should be able to assist you with an analysis of your social security. This will help you to decide if and when you should start drawing this. If you’re unsure about social security details or what this entails, check out this article for a more in-depth view on this.
4. Health Insurance: Next you want to consider health insurance. Who will be paying for this- work, you, or Medicare?  This will largely depend on the age at which you are retiring. Read this article for more details on Medicare.
5. Continuously review and adjust your plan: As your circumstances change, make sure to revisit your retirement plan and adjust it as needed to stay on track towards your goals.

Key Takeaways- Planning for retirement is an important part of your financial future. Get a financial professional in your corner who will help you create a retirement savings plan, invest wisely, and monitor your progress.

Getting each of these steps squared away can help ensure a smooth retirement process. For a free consultation or to learn more, contact a local Cedar Rapids Iowa retirement expert today. 

Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.