Top 10 Ways to Prepare for Retirement
Achieving financial security in retirement doesn't just happen—it requires careful planning, commitment, and, of course, money. At Falcon Wealth Planning, we believe that the earlier you start preparing, the better off you'll be. Here are ten essential steps to help you prepare for a comfortable and secure retirement.
1. Start Saving, Keep Saving, and Stick to Your Goals
Whether you're already saving or just getting started, the key is to keep going. Even small amounts can add up over time. Make saving for retirement a priority and set clear goals. The earlier you start, the more time your money has to grow, so don’t wait. Remember, it's never too early—or too late—to start saving.
2. Understand Your Retirement Needs
Retirement can be expensive, and experts suggest you may need 70% to 90% of your pre-retirement income to maintain your lifestyle. Planning ahead is crucial. Consider how much you’ll need and start working towards that goal now. At Falcon Wealth Planning, our advisors can help you understand your financial needs and create a plan that aligns with your goals.
3. Contribute to Your Employer’s Retirement Plan
If your employer offers a retirement savings plan, such as a 401(k), make sure you’re enrolled and contributing as much as you can. These plans often come with tax advantages and employer matching contributions, which can significantly boost your savings. Find out how much you need to contribute to get the full employer match—it’s essentially free money.
4. Know Your Pension Plan
If you have a traditional pension plan, it’s important to understand how it works. Request a benefit statement to see what your pension is worth and how it fits into your overall retirement plan. If you’re changing jobs, make sure you know what will happen to your pension. Our advisors at Falcon Wealth Planning can help you understand your options.
5. Consider Basic Investment Principles
How you invest your savings is just as important as how much you save. Diversifying your investments can help reduce risk and improve your returns over time. Understand your investment options, and don’t be afraid to ask questions. Falcon Wealth Planning can guide you in choosing an investment strategy that fits your retirement goals.
6. Avoid Touching Your Retirement Savings
Withdrawing from your retirement savings early can be costly. You could lose both principal and interest, and you may have to pay penalties or taxes on the withdrawal. If you change jobs, consider rolling your savings into an IRA or your new employer’s plan to keep your money growing. Our team can help you explore the best options for your situation.
7. Consider an Individual Retirement Account (IRA)
If you don’t have access to a retirement plan through your employer, or if you want to save more, consider opening an IRA. You can contribute up to $6,500 annually (more if you’re 50 or older), and IRAs come with tax advantages that can help your savings grow faster. Falcon Wealth Planning can help you decide whether a traditional or Roth IRA is right for you.
8. Understand Your Social Security Benefits
Social Security benefits typically replace about 40% of pre-retirement income. The amount you receive will depend on your earnings and when you start taking benefits. You can estimate your benefit using tools on the Social Security Administration’s website. Falcon Wealth Planning can help you integrate Social Security into your overall retirement strategy.
9. Don’t Hesitate to Ask Questions
Retirement planning can be complex, and it’s important to get the right advice. Whether you’re talking to your employer, bank, or a financial advisor, make sure you ask questions and understand the answers. Our advisors at Falcon Wealth Planning are always here to provide clear, practical advice to help you make informed decisions.
10. Schedule a Free Financial Assessment
These tips are a great start, but there's much more to successful retirement planning. At Falcon Wealth Planning, we offer a free financial assessment to help you get a comprehensive view of your financial situation and create a personalized plan for your retirement. Contact us today to schedule your assessment and take the first step toward a secure retirement.
*The content in this blog is for general informational purposes only and does not constitute personalized financial, investment, tax, or legal advice. Falcon Wealth Planning, Inc., a fee-only, true fiduciary, registered investment advisor, provides this information to give a broad understanding of financial concepts and strategies.