Retirement Planning in Pennsylvania

 

What You Need to Know About Retirement Planning in Pennsylvania

 

 

 

Retiring planning is a process of various steps that keeps evolving. To ensure that you can have a secure and comfortable retirement, you need to make sure that you build a financial cushion to fund it all.

 

 

 

What Is A Retirement Plan?

 

 

Simply put, a retirement plan involves thinking about your retirement goals and how long you have to meet them. You will need to consider different retirement investment types that help you raise the money to fund your future. Ultimately, as you save money, you have to invest it to enable it to grow.

 

Overall speaking, retirement planning includes identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk. After all, future cash flows are estimated to determine if the retirement income goal will be achieved.

 

 

 

When should you start planning for retirement?

 

 

Well, the simplest answer is as early as you can. However, it is important to keep in mind that the emphasis people put on retirement planning changes throughout different life stages. While early in a person's working life retirement planning is about setting aside enough money for retirement, during the middle of your career, it might also include setting specific income or asset targets and taking the steps to achieve them.

 

As soon as you reach retirement age, you go from accumulating assets to what planners call the distribution phase. You’re no longer paying in; instead, your decades of saving are paying out.

 

People used to say that you need about $1 million to retire comfortably. Other professionals use the 80% rule (i.e., you need enough to live on 80% of your income at retirement). So, if you made $100,000 per year, you would need savings that could produce $80,000 per year for roughly 20 years, or $1.6 million. Others say most retirees aren't saving anywhere near enough to meet those benchmarks and should adjust their lifestyle to live on what they have.

 

 

 

Why should you start planning for retirement?

 

 

One of the things you may not know is that just 20 years ago, Americans usually retired between the ages of 62 and 65. Now people are as likely to delay retirement and continue working longer or to work part-time in retirement.

 

It's also important to acknowledge that health care costs have been increasing over the last years and the trend should continue. As you grow older, it's natural that you need more health care treatments.

 

Notice that there is also a difference in savings in what concerns the genre. Since women have a longer life expectancy, they need to save more for retirement than men.

 

 

 

Examples of Retirement Investments

 

 

One of the best ways you have to support your retirement is to invest the money that you save along your working career. However, your retirement investments won't always be the same.

 

 

#1: Young Adulthood (Ages 21–35):

 

During this stage, most people don't have a lot of money to put aside. Nevertheless, it's a matter of taking advantage of compound interest. If you put aside $50 a month, for example, it will be worth three times more if you invest it at age 25 than if you wait to start investing at age 45, thanks to compounding.

 

 

#2: Early Midlife (Ages 36–50):

 

While during this period, most people suffer from financial strains (mortgages, student loans, insurance premiums, and credit card debt), it's important that you keep with your retirement investment. 

 

People at this stage of retirement planning should continue to take advantage of any 401(k) matching programs their employers offer. They should also try to max out contributions to a 401(k) and/or Roth IRA (you can have both at the same time).

 

 

#3: Later Midlife (Ages 50–65):

 

It's natural that as you grow older you become more conservative. However, there are also some benefits.

 

From age 50 on, you can contribute an additional $1,000 a year to your traditional or Roth IRA, and an additional $6,000 a year to your 401(k).

For those who have maxed out tax-incentivized retirement-savings options, consider other forms of investment to supplement your retirement savings.

 

 

 

Why should you choose Jeremy Springer as an insurance agent?

 

 

Jeremy Springer is someone who will help you create your retirement plan according to your goals and needs. He will also help you make decisions with your money that will help you reach your financial goals as efficiently as possible.

 

Ultimately, Jeremy Springer will tell you all your options and name the best ones to ensure that you have a secure and happy retirement.

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