We will determine if your portfolio can be improved. Investing in a greater proportion of stocks will help your accounts grow over time; just make sure you can handle the extra risk. Eligibility for early benefits begins at age 62, but the retirement age for full benefits is 66. And they’re obviously under-served by the 300,000 financial advisors in the U.S. This material has been prepared for informational and educational purposes only. Crunch the numbers for your specific situation to see how much you'll have to save to meet your goals. The Social Security Administration offers an online calculator. A Roth IRA can be an excellent tool for young adults, as it is funded with post-tax dollars. Retirement planning includes a lot more than simply how much you will save and how much you need. To help you stop procrastinating and start preparing and planning, we’ve come up with an effective and unconventional program that connects you with content, people and process to address your gaps in retirement knowledge, readiness and advice. Such health-related expenses can decimate your savings if not properly planned for. The presence or absence of regular monthly payments like a mortgage or car loan will affect how much money you'll need each month. One benefit of this retirement planning stage is catch-up contributions. Understanding Your 401(k) Retirement Plan, Are You Planning to Retire in 2021? The information contained on this website is for informational purposes only and should not be considered investment advice or recommendations, nor should it be consider tax or legal advice. (source: Money.com, “Women’s Wealth Growing Faster Than Men’s”, 2016), ** Nearly two-thirds (62.8%) of American women are breadwinners or co-breadwinners. Under these conditions, you'll need to put aside $24,000 per year to have a good shot at your retirement portfolio lasting until you turn 99. That means you could pay as much as 37% in taxes on any money you take from your traditional 401(k) or IRA. The office in Newtown is an office of convenience and is only used for client meetings. Let's say you want to live on $60,000 in retirement, and Social Security pays you $20,000 per year on top of a small ($5,000 per year) pension. If you're 30, for example, keep 110 - 30 = 80% of your portfolio in stocks, with the rest in bonds and cash, and rebalance yearly. Step 5 addresses retirement tax strategy such as setting up appropriate tax withholdings, planning for Required Minimum Distributions, performing periodic Roth Conversions, and other tax related items that add value to the long-term plan. During the middle of your career, it might also include setting specific income or asset targets and taking the steps to achieve them. Advice may only be provided after entering into an advisory agreement with Advisor. When Is the Best Time to Invest in Small-Cap Stocks? Find out what you don’t know from us and get retirement smart. Only $35,000 needs to come from your portfolio. Are you ready to Know More & Have More…now and in retirement? You can learn more about the standards we follow in producing accurate, unbiased content in our. Let's conquer your financial goals together...faster. A Roth IRA is a retirement savings account that allows you to withdraw your money tax-free. Rolek Wealth Management, LLC ("Advisor") is a registered investment advisor. There are also target-date funds designed to automatically alter and diversify assets over time based on your goal retirement age. Tax Planning. You'll want to keep your expenses low enough that your withdrawals don't exceed that amount. For those who have maxed out tax-incentivized retirement-savings options, consider other forms of investment to supplement your retirement savings. Returns as of 11/25/2020. The tool will highlight your deficiencies and gaps in your retirement finances, as well as your retirement knowledge. This projection includes about 41 million people who will be age 55 and older—of whom 13 million are expected to be ages 65 and older.. A key component of retirement planning is protecting your assets. Step 7 addresses wills, trusts, probate, estate and inheritance tax planning, periodic gifting, and protecting assets from potential future long-term care costs. You may be free from some current expenses like your mortgage during your retirement years, but you'll probably also pick up new expenses like travel and additional health care costs. You can live the retirement you’ve imagined. As a rule of thumb, 110 minus your age is the percentage of money you should keep in equities (stocks), with the rest in bonds and cash equivalents. That's why it's important to consider a Roth IRA or a Roth 401(k), as both allow you to pay taxes upfront rather than upon withdrawal. We’ll help you understand what the academics (vs. industry bigots) believe are the right components and strategies to optimize & protect your income for life.