Retirement can be relaxing. Planning for it can take a little effort.
The basics concept is simple - you need to save enough money to afford the retirement lifestyle you want. To help you start down that road, your Starion Investment Services representative will provide planning help and guidance on where to put your money. To start the ball rolling, here are some topics to consider:
Save more while working
- Take advantage of company retirement plans. For 401(k) plans, contribute as much as you can and at least enough to earn any company match
- Set up an automatic savings plan. Have a set amount deducted from each paycheck and deposited into an account you earmark for retirement.
- Determine where you can cut back on monthly spending to reduce expenses. Some ways are refinancing your mortgage, increasing insurance deductibles to lower your premiums and reducing spending on discretionary items such as eating out.
Earn more on assets before retiring
- Work with your Starion Investment Services representative to see how your money is invested.
- Talk about your investment time horizon and financial risk tolerance.
- Come up with a plan for a diversified portfolio that can let you move forward with confidence.
- In general, the younger you are, the more aggressive you can be with your investment funds.
While it may not be practical for for some, delaying retirement lets you save more for retirement in several ways*:
- You can deposit more into your retirement plan and regular savings accounts.
- The longer you leave your funds in your retirement account, the better chance you have of earning more money. For example, if you delay retirement for five years and earn 5% on your funds annually, you'll end up with 27% more just from the earnings**.
- Delay collecting Social Security benefits to increase your monthly benefits. One can start collecting full Social Security retirement benefits at age 66. If you start at age 62, you only receive 75% of that benefit. If you wait and start collecting at age 70, you will get 132% of that benefit.
Spend less in retirement
Everyone wants a full and active retirement lifestyle, but you'll need to define what that means. Anticipating how much you'll need to live on and then setting a sensible budget are important steps to take.
How much do you want to pass on to other?
What you do not spend during your lifetime will pass to your heirs. It's important to discuss your finances with your family to prepare them for that day.
Take charge of your retirement
Starion Investment Services representatives are experienced at guiding you through the complexities of retirement planning. No matter where you are in life, it's never too early - or too late - to consult a financial professional to review your plan.
Starion Bank is a full-service financial institution with branches in North Dakota and Wisconsin.