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How to Plan for Retirement?

How to Plan for Retirement?

November 02, 2020
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Retirement planning refers to a financial context of allocation of revenue or savings for retirement. The purpose of retirement planning is to help an individual achieve financial independence, even after they get old. At A New Path Financial, we assist clients with retirement planning in Ann Arbor, Michigan and the surrounding areas so that they can get on a path towards their financial goals.

Why do you need to have a plan for retirement?

Eventually, you will stop working as age progresses. While your paycheck may stop coming, your expenses aren’t going to stop. This is why it is important to have a plan for retirement, to avoid old-age poverty and running out of money. The primary purpose of retirement planning is to build financial stability. This can be started by identifying the sources of income, managing the assets, estimating future retirement expenditures, and creating a plan.

Tips for Saving For Retirement

  1. Start saving and stick to your financial goals

Whether you are saving for retirement or other financial goals, saving is definitely rewarding. If you haven’t started saving for your retirement, start it today. You can even start in a small amount and increase little by little each month as your earning improves. The sooner you start saving, the higher the chances of growing your money, and the more you will have to sustain yourself after your retirement.

We suggest meeting with a CERTIFIED FINANCIAL PLANNERTM Professional to determine how much you’ll need to save each month to reach your financial goals. 

  1. Recognized your retirement needs

Retirement can be expensive and difficult if you don’t plan ahead. Most commonly, people will need 70 to 90% of their preretirement income in order to maintain the same standard of living after retirement. The best way to prepare for your retirement is to recognize your retirement needs and start planning ahead to fit those needs.

  1. Work with Professionals

Retirement planning is just too important to figure out by yourself. You need an investment professional or financial advisor on your side to help you create a retirement plan that fits your financial and life goals. Your financial advisor will not only help you reach your goals but may also increase the value of your portfolios over time.

  1. Don’t touch your retirement savings

Once you start saving for your retirement, make sure that you don’t withdraw that money. If you do this, it will impact your interest, principal, and you may even lose tax benefits. Even worse, you may also have to pay withdrawal penalties in some cases.

Retirement is a great time of your life when you can spend your time with family and doing what you love. You don’t want financial issues to affect those precious days. If you need assistance from experts with retirement planning in Ann Arbor, Michigan, schedule time to meet the experts at A New Path Financial so that you can get on a path towards your ideal retirement.