Retirement may seem years away especially when you are young, but neglecting the proper planning now could cost you hundreds of thousands in savings. If any of these describe your situation, it is time to kick your planning into high gear.
Your normal savings account isn’t earning interest
The national average interest rate for saving accounts is just 0.04 percent according to FDIC. Moving your money to an account with higher interest is one of the simplest ways to effortlessly save extra money.
You haven’t checked your 401(k) balance in the past 6 months
You should be checking your 401(k) account regularly. You should be aware of how your money is invested and your tolerance for risk and make adjustments as necessary. A financial advisor can assist you in this.
You haven’t estimated how much you’ll need to retire
Surveys have repeatedly shown that significant numbers of Americans in their 30s, 40s, and even 50s have no retirement savings. If you plan to travel and have a comfortable lifestyle, you need to figure out exactly how much you’ll need to save and adjust accordingly.
You’re planning on electing Social Security benefits at 62.
The SSA clearly indicates that the earliest age you can start receiving social security benefits is 62, and you’ll lose 30 percent of the benefits for that year. Your benefits at 62, 66, or 67 are not your maximum benefits, though. Benefits increase by 8 percent per year every extra year you wait. The maximum benefit kicks in at the age of 70.
You haven’t formalized a retirement plan with a financial advisor
While the value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, research suggests average additional investment returns can range from 1.5 percent to 4 percent each year. Voya Financial found that 79 percent of people who use an advisor said they “know how to pursue achieving their financial retirement goals.” The study also found that 59 percent of those who use an advisor have calculated how much they need to retire, while 52 percent have established a formal retirement investment plan. Chances are, there are several highly qualified financial advisors in your town. However, it can seem daunting to choose one. This new tool makes it easy for you to find the right financial advisor. Now you can get matched with up to three local fiduciary investment advisors that have passed a rigorous screening process.
Follow these steps to get matched up with the right financial advisor for you.
- Simply enter your ZIP Code.
- After you enter your ZIP Code Answer a few basic questions about your financial goals, you can compare up to three top local advisors to you and decide which to work with.
- Enjoy a better financial future!