Budget of life · Retirement
When the paychecks stop, the bills don’t. Retirement can last twenty or thirty years, and the decisions you make long before then decide what it looks like. The good news: a clear picture of where you’re headed makes the road much easier to travel.
For many families, retirement income comes from a mix of sources: Social Security, any pension, workplace retirement plans, personal savings and sometimes part-time work. Pensions are much less common than they used to be, which means more of the job falls on what you save yourself.
A great first step is checking your own Social Security statement at ssa.gov to see what you’ve earned so far.
Estimate what you’ll need each month in retirement, then subtract what you expect from Social Security and any pension. The gap is what your savings need to cover. Seeing that number, even roughly, turns retirement from a vague worry into a goal you can plan around.
Workplace plans like a 401(k), along with traditional and Roth IRAs, come with tax advantages designed to help retirement savings grow. If your employer offers a match, contributing at least enough to get the full match is one of the simplest wins available.
As retirement approaches, review beneficiaries, update your will and think about how you’d handle health costs. Getting these details in order protects both you and the people you love.
As early as you can. Time is the most powerful ingredient, so even small amounts in your twenties can matter a great deal.
It’s not too late. A later start usually means saving more and being deliberate, and many plans allow extra catch-up contributions after age 50.
Mike does not provide tax, legal or accounting advice. For guidance on your own situation, talk with a qualified tax professional or attorney.
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