The general rule of thumb when it comes to retirement planning is saving sooner is always better than saving later.
But how much does someone need to retire? That of course depends on your age and investments. According to the Social Security Administration, the normal retirement age is about 66 years old and most people would consider a million dollars enough to live on based on the general populations life expectancy of 85 years old. However, given the eroding effect of inflation – a goal of $2.5 million is more accurate.
Consider this, a 25 year old today that saves $5,000 every year for forty years will retire with nearly a million dollars, assuming it is a 7% rate of return. A 35 year old that begins to save $5,000 annually will turn 65 with only $472,000. To get to one million dollars in thirty years rather than forty the 35 year old would need to save at least twice as much as a 25 year old.
Consistent savings as early as possible is helpful, but that probably won’t get you to retirement by itself. Wise investing will most certainly help you succeed to your goal.
Many products we offer will help you reach your retirement financial goal. Please let us help you find out which of the following would be suitable for you or your business. Contact at firstname.lastname@example.org for more information about Employer Sponsored Retirement Accounts (401 K’s, Supplemental Executive Retirement Plans, Deferred Savings Plans, Executive Bonus Plans) Non-Employer Sponsored Retirement Accounts (Municipal Bonds, Roth IRAs, Annuities) and Whole Life Insurance Policies.
If your employer offers a 401 K plan, take advantage of it! You will get a tax break now, as well as save as much as $16,500 per year or more towards your eventual retirement. Most employers incentivize retirement planning by matching a certain amount of your contribution, and that is free money. While the amount will vary for each employer a typical plan contributes 50 cents for each dollar up to a certain percent of a salary. If you make $75,000 and the limit is 6%, $2,250 would be earned in effortless savings to you that money then grows by compounding over the years.
A life insurance policy is another way to protect your retirement, although it’s not often thought of. The amount you will pay for whole life insurance will be based on your age, occupation and income, but you can buy as much or as little as your budget will allow. Also think about insuring your life and your ability to earn a living through out a disability. Disability Insurance policies are also available.
Please contact us to speak with one of our insurance specialists at 301-590-0006 to help you find out which one of our cash-value insurance policies (whole life) would make sense for your situation. If you have maxed out all of your retirement-saving options, it may be valuable possibility.