Retirement is a major topic of discussion for people in the workforce. They have their eyes set on when they can comfortably retire and spend their golden years enjoying the time away from their daily grind. However, ensuring you have enough money saved for your end goal is something that you need to consider throughout your career. So — when is the best time to start planning for retirement, and how can you maximize your funds? Stolz & Associates, P.S. can help answer your burning questions.
Knowing When to Start
Knowing when to start saving is crucial for people looking into saving for retirement. Starting early is best to help ensure you have enough squared away to live comfortably in retirement. If your company offers a 401K with a contribution match percentage, taking advantage of it early can go a long way towards padding your retirement. However, knowing how much you need to save can prove trickier than you initially thought.
Whether you’re just starting your career or you’re closer to retirement, the best time to start saving for retirement is today. But, unfortunately, putting off creating a retirement plan can have disastrous consequences for your future and lead you to delay your retirement longer than you hoped.
The Earlier, the Better
People looking to save for retirement can see greater returns the earlier they begin contributing to their 401Ks or IRA accounts. These monthly contributions can significantly add up over time, and with the right investment strategy, you can see a large amount of compounded growth over time. However, the longer you wait, the more difficult it becomes to have enough saved in these accounts to cover the entirety of your retirement.
How Much Do I Need to Save for Retirement?
Now that you know there is no time like the present to start saving for retirement, you’ll want to know just how much you need to live as comfortably as you want after you’re done working. Having a clear target in mind will help you and an experienced retirement planner in Tacoma, WA, plan out your necessary contributions.
As a general rule, your savings target should be at least 10-15% of your gross income to cover your retirement. However, different factors come into play that can affect that percentage and alter your contribution schedule. For example, your desired lifestyle often dictates whether you need to go higher or stick with that 15% baseline. So if you want to travel more, enjoy the finer things, or generally live a slightly more lavish way, your financial advisor can help you figure out how much you need to contribute to hitting these goals.
Factoring in things like living expenses, health care, debt obligations, and having a buffer for the unexpected can also affect your regular contributions. While you may have a general number or estimate in mind, whether your current strategy can cover everything is something you cannot know with absolute certainty. But consulting with Stolz & Associates, P.S., can give you a better idea of what you need to cover.
When you begin to think about the future, having a clear plan for your retirement can help soothe any anxiety about the future. Starting as early as possible can help ensure your savings accounts are ready for your golden years, but knowing how much to contribute can feel overwhelming. However, with the right wealth management and retirement planning team in Tacoma, WA, behind you, you can rest assured that you have all your bases covered. Stolz & Associates, P.S. has helped countless clients ensure their financial futures are secured and planned for as early as possible.
Contact our team to schedule your first consultation and plan your retirement today!