October 1, 2018

Have you thought about your retirement savings lately? Do you know how much you will need to save for retirement in order to spend those years comfortably? Are you nearing your retirement and unprepared?

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Whether you're already retired, soon to be retired, or just getting started in your career, it is never too early to start planning for your retirement. In fact, it is one of the most important areas to be focusing on in order to ensure a comfortable future. However, this isn’t on many worker’s radars. According to a 2018 Gallup poll, around 41% of American workers said they haven’t even thought about how much income they'll need each year during their retirement, and 32% of respondents said they only had an estimated number. The good news is that retirement does not have to stress you out, because we can help you with a plan that works for you!

The key to a successful retirement plan is to create a one that is based on your current financials, but can also meet your projected financial goals for the future. Although that sounds simple, it is actually quite complex. The IRS has specific requirements for each benefit plan, so what seemed easy enough can now get confusing.

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Here are our top tips for setting yourself up a successful retirement plan:

Start early.
The most valuable resource you have is time. The earlier you start saving for retirement, the better. You will also endure less stress and have a more successful retirement knowing that you are not playing catch up. The sooner you start putting money away, the larger your retirement nest egg will be. So don’t wait!

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Put money into your retirement savings first.
The first thing you should do on payday is put money into your retirement savings account. That’s right! Before you even pay a bill, put away a specific percentage of your paycheck right into your retirement savings (we recommend around 10% to 15% of each paycheck). The reason is because if you put money into your savings last, many times you might not have much spending money left and will be more likely to skip over putting money away. Let’s be honest, it is a lot easier to pay some bills and spend the rest on nonessentials, like Starbucks and that pizza takeout. So make sure you think long term when it comes to your paycheck, and not so much short term gratifications.

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Make it automatic.
If you are more likely to skip putting money into your savings first, consider making automated payments. It takes the stress out of it and enables you to save consistently without having to think about it. All you have to do is set up the deduction once and let the automated system work its magic each paycheck. Automating savings can be accomplished in many ways, so make sure to speak to your accounting firm to set up the best system for you!

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So there you have it, our top three tips. Want more? We would love to chat!! To get started on your retirement plan, simply fill out the contact form below, give us a call at (906) 774-4051, or email us at solutions@f-ccpa.com. We're happy to help you start saving!