Retirement is a time to look forward to and savor the rewards of your hard work. To maintain your retirement lifestyle, you must, however, be sure that you have the financial resources. Retirement planning is one method to help preserve your wealth.
Identify the funds you’ll need for retirement
It’s important to determine your retirement spending needs before you retire, as well as the amount of money you’ll need to set aside to meet those goals. You should also consider your expenses—both present and future—as well as any supplementary costs that might occur after retirement such as healthcare costs, travel expenses, and entertainment expenses.
Build an Emergency Fund
You should also create an emergency fund. An emergency fund is a savings account that you can utilize to pay for unforeseen needs like car repairs or medical bills.
Typically, at least three to six months’ worth of spending should be put aside in your emergency fund.
This may seem like a lot, but having a solid emergency fund can save you from financial hardship.
Set up the Right Accounts for You
Investing in a 401(k) or other accounts that offer tax deferral we feel is an excellent way to build your nest egg. A 401(k) is a retirement savings plan sponsored by an employer that allows employees to save for retirement while reducing their taxable income.
Another option is an individual retirement account (IRA). An IRA is a retirement savings account that allows individuals to save for retirement while reducing their taxable income. There are two types of IRAs: traditional IRAs and Roth IRAs.
A traditional IRA allows you to deduct your contributions from your taxable income, which can help reduce your tax bill. However, you will need to pay taxes on the money when you withdraw it during retirement. A Roth IRA does not offer tax deductions on contributions, but you will not need to pay taxes on the money when you withdraw it during retirement if certain conditions are met.
Get Professional Help
A financial advisor can help you create a retirement plan that meets your needs and goals. They can also help you choose the right accounts for your retirement savings.
It’s a good idea to work with a financial advisor.
If you are looking for a financial advisor, schedule a consultation with Cold Harbor Financial! Our team is committed to proactively addressing the needs of our clients and building loyal and long-term relationships with them. We have been providing a high level of professional guidance and personal client service since 1990.
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Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
All investments are subject to risk, including loss. There is no assurance that any investment strategy will be successful. Asset allocation and diversification does not ensure a profit or protect against a loss. It is important to review the investment objectives, risk tolerance, tax objectives and liquidity needs before choosing an investment style or manager.
Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While familiar with the tax provisions of the issues presented herein, Raymond James Financial Advisors are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.
