Saving for Retirement
Tips on Saving for Retirement – While these tips are helpful, there are numerous factors that come into play when planning for retirement. Make sure you ask questions, lots of questions, and most importantly make sure you understand the answers.
If you are already saving for retirement, go ahead and save some more! If you’re not saving, it’s time to get started. The sooner you start saving, the more time your money has to grow.
The sooner you start saving, the more time your money has to grow. Check out the chart that illustrates how big of an impact early savings habits can have. Remember, it’s never too early or too late to start saving.
Start Saving Early – This hypothetical example illustrates your savings growth based on saving $5,000 every year with an interest yield of 7% annually.
Knowing all of the savings options that are available to you allows you to optimize the ways you can save for retirement. Find out if your employer has a traditional pension plan, and if so what are those benefits. If your employer offers a savings retirement plan like a 401(k), make sure you’re contributing enough to get the full company match. There are also many strategies on when and how to claim your Social Security benefi ts. You can calculate your benefit amount on www.SocialSecurity.gov. The more you know, the more you can plan.
We are fiduciaries
What exactly does this mean to you? Simply put, as Investment Advisor Representatives, we act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interests of our clients and to disclose any conflicts of interests and all associated fees. Additionally, the recently enacted Department of Labor (DOL) Fiduciary Rule imposes a fiduciary duty upon advice given to any retirement account, including qualified insurance annuity products.
Social Security Overview – Knowing when and how to claim your Social Security retirement benefits can be confusing and sometimes overwhelming. Make sure you ask questions and more importantly, make sure you understand the answers.
If you have any questions about the information here, or would like to setup a time meet about your retirement and social security benefits, please don’t hesitate to give us a call.
You can start collecting your Social Security retirement payouts beginning at age 62. You must start collecting payouts prior to age 70 though. This leaves you with an 8 year window to start collecting your benefits.
If you retire prior to age 62, just make sure you have enough retirement income to cover the years before your benefits kick in.
The full retirement age varies based on when you were born. The full retirement age used to be 65, but in 1983 Congress voted to raise the age to 67 for individuals born in 1960 or later. To find out your full retirement age visit http://www.ssa.gov/retire2/retirechart.htm
As a general rule, early or late retirement will give you about the same total Social Security benefits over your lifetime.
If you retire early, the monthly benefit amounts will be smaller to take into account the longer period you will receive them. If you retire late, you will get benefits for a shorter period of time but the monthly amounts will be larger to make up for the months when you did not receive anything.
There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit is reduced.
Once a year, the Social Security Administration will send you your annual benefits statement. In the statement, it will illustrate how much money you would receive in benefits if you wait until your full retirement age.
You can also estimate your benefit amount by using the Social Security Administrations calculator. You can access this at: http://www.socialsecurity.gov/retire2/estimator.htm
Keep in mind, that the younger you are, the less accurate your estimate will be, because your future earnings will play an important role