Saving for your retirement is a long, nuanced process. Because of the many complications involved, few people know the full deal about getting ready for the time when they are no longer working. However, with these retirement FAQs answered, you’ll know more about one of the most important goals in your life.
- Where should I retire? Where you retire will impact just how long your savings will last. If you retire in a place with lower costs of living, you can stretch your money further. Larger cities with relatively low costs of living include Dallas, Texas; Charlotte, North Carolina; and Phoenix, Arizona. Or, check out this list of best cities for early retirement. Plus, when you move, you can also consider downsizing, which will minimize the monthly payments you make to maintain your household.
- Should I make high-risk/high-return investments? The answer to this question is completely up to you. However, there are two factors you should consider: your age and how much you will be investing. If you’re young, you can recover from losses—that means you’re in a better position to make this gamble. As time goes by, you can still make risky, lucrative investments, but you will probably want to scale down your involvement. Ultimately, however, your risk tolerance is completely up to your comfort level—no matter your age. At Ty J. Young Inc., we offer investment vehicles through which you are able to benefit from stock market gains, but you suffer zero stock market losses. It’s the best of both worlds!
- How can I determine just how much I’ll need to retire? Different people will need different total retirement savings. Make sure you keep the following factors in mind:
- Women tend to have less in savings, meaning that they may need to work longer to achieve the properly-portioned nest egg. Often, women are the primary caretakers when they and their spouses have children, which means that they sacrifice years of earning. Finally, single women (or men, for that matter) also do not have the support of a spouse to supplement their retirement earnings.
- Those who exercise more frugal spending won’t need to save as much to maintain their lifestyles, whereas people who enjoy higher incomes will need to save more to continue their ways. Make sure you keep your typical lifestyle in mind as you save—and whether you need to downsize.
- When you draw your Social Security. If you can draw your Social Security later, you’ll benefit with extra padding to your savings. Try and make a plan to see how long you can last before tapping into this helpful service.
- What type of retirement savings account will suit me? This is one of the most frequently-asked retirement FAQs, answered! If you have a generous employer who will match your 401(k) investments, you should take advantage of this by maximizing the amount you are contributing to your 401(k). If you are not offered a 401(k) by your employer, you’ll want to consider a traditional or a Roth IRA. Read more about the differences between a traditional and Roth IRA.
- Will I lose traction in my retirement fund if I don’t employ an advisor? The answer is no—if you research diligently, stay on top of market trends, and carefully monitor your investments. There are many people out there who are masters with money. Others may need a bit more help. Overall, it’s wise to find a financial advisor, as they’re professionally trained and can help guide you through the process. If your budget does not allow you to afford additional help, consider talking to retirement-savvy friends, family, and colleagues. You definitely want to go into the process with both eyes open—so don’t close yourself off to assistance.
With your retirement FAQs answered, now know you have the foundation for a successful post-work future. Even better, once you have the money in the bank, you can ask yourself more exciting questions, such as where you’re going to enjoy your time and what fun activities you will try out in your twilight years.
If you want to learn more about the investments necessary to form a strong retirement fund, call the experience financial experts at Ty J. Young Inc. at 877-912-1919. As for learning more about the retirement process—and how to prepare for the main event—continue to read our Retirement You Earned Blog. When you reach your golden years, you’ll have the resources necessary to enjoy them.