Want to increase your nest egg by over 400%?
Add one new habit to your life and you will outperform others by 445%.
Interested? Who wouldn’t be?
According to an HSBC study1 of retirement savings habits worldwide:
- People who have a retirement savings plan save 300% more than people who don’t have one.
- Those that use an investment advisor to design their plan save over 400% compared to their peers.
As they say, most people don’t plan to fail, they just fail to plan. Following a plan keeps you on track and gives you solid results. Following a better plan gives you better results. Not all plans are created equal. Leverage the knowledge and experience of a professional planner to maximize your nest egg, and help your money grow to its potential.
Let’s explore the basic steps for growing your retirement savings.
STEP 1 – Start Saving
You should start by investing 15% of your gross income. Take advantage of tax deferred retirement plans such as, 401(k), 403(b), Roth or Traditional IRA’s. Talk to us for more detailed information.
The benefits of long term savings growth can be very surprising. (For example, person age 37 with an income of $75,000 annually could have approximately $1.56 Million for retirement if they invest 15% of their annual income over 35 years.)
STEP 2 – Estimate Your Retirement Income
Try to estimate your retirement income based on your retirement savings. An investment advisor can develop this estimate based on your remaining expected contributions, returns on investment, planned retirement age, inflation, taxes and other possible fees.
If you are doing this on your own, don’t get lulled into a false sense of security with a workplace-provided target-date retirement fund. Many don’t deliver the growth you would have expected.
You will also want to develop a backup plan. Learn to expect the unexpected. Illness, accidents, or job losses can force you to change your plan, and you will want to be prepared.
STEP 3 – Estimate Your Retirement Budget
Create a projected retirement budget. Start with your current budget, remove your job related expenses, and try to factor in some other variables. Will you be selling your home and moving into a smaller place? Will you be traveling? You will want to ensure that you include medical care costs and Social Security benefits. An investment advisor can help you understand what is covered by Medicare and what will require additional coverage. Medicare does not cover long term care. An investment advisor can also show you when to begin Social Security benefits. The amount you receive depends on your retirement age. Remember, life insurance will help provide something we all need, financial security. Think about your personal financial situation. Would your family be able to financially survive without your income? We can help you make the road to retirement smoother by making educated choices today.
Turbocharge your Retirement Plan Today
Retirement planning takes time and discipline, but it brings you the security that we all desire for our futures.