Retirement Ready: Essential Steps for 2024 Financial Future
Ensuring a Comfortable Financial Future
Retirement symbolizes a new phase in life—an era to relish the rewards of hard work and explore personal interests.
“To secure a comfortable financial future in 2024 and beyond, it’s crucial to take steps toward preparing for retirement,” highlights Michael Norton, Senior Vice President of David Lerner Associates. These steps, vital for a secure and enjoyable retirement, hold relevance regardless of your proximity to retirement.
Assessing Retirement Goals
Initiate by assessing your retirement aspirations. “Envision your post-working years, contemplating lifestyle desires, travel plans, and potential healthcare needs. Understanding your goals shapes your financial strategy and provides a roadmap leading to retirement,” Michael Norton adds.
- Calculating Retirement Expenses
Estimate your future expenses by considering your current lifestyle and adjusting for potential changes in retirement. Account for housing, healthcare, leisure activities, and other essential costs. Having a clear understanding of your projected expenses allows you to create a more accurate retirement budget.
- Boost Retirement Savings
In 2022, over half of American households had no savings in retirement accounts, with approximately 46% reporting any savings in these accounts.
If you haven’t already, maximize your retirement contributions. You can use employer-sponsored plans such as 401(k)s or 403(b)s. Make sure to contribute enough to receive the employer match, as it is essentially free money. Additionally, consider contributing to Individual Retirement Accounts (IRAs) for added tax advantages.
- Reviewing and Adjusting Investments
Evaluate your investment portfolio to ensure it aligns with your risk tolerance and retirement timeline. As you approach retirement, consider adjusting your asset allocation to include more stable investments. Diversifying your portfolio can help protect against market forces while providing a steady income stream.
- Considering Healthcare Costs
Healthcare expenses often rise in retirement. Explore healthcare options, including Medicare, supplemental insurance, and long-term care coverage. Planning for healthcare costs allows you to maintain your health without depleting your retirement savings.
- Paying down Debt
Prioritize reducing or eliminating high-interest debt before retirement. This encompasses credit card balances, car loans, and outstanding mortgages. Decreasing debt burdens provides increased financial flexibility and reduces stress upon entering retirement.
- Creating a Withdrawal Strategy
Develop a comprehensive strategy for withdrawing funds from your retirement accounts. Consider the sequence in which you’ll tap into various sources, including taxable and tax-advantaged accounts. A well-structured withdrawal plan minimizes taxes and maximizes the longevity of your retirement savings.
- Exploring Additional Income Sources
Consider additional sources of income in retirement, such as part-time work, consulting, or turning a hobby into a small business. Supplemental income can not only provide financial support but also keep you engaged and fulfilled during your retirement years.
- Optimizing Social Security
Understand the nuances of claiming Social Security benefits. Although benefits can start at 62, delaying until full retirement age or later can yield higher monthly pay-outs. Evaluate your financial situation and health to decide the optimal time to begin receiving Social Security.
- Developing a Contingency Plan
Life is unpredictable, and unexpected events can impact your retirement. Establish a contingency plan to address emergencies or unforeseen circumstances.
This could mean having enough money saved for emergencies. It could also mean having insurance. Additionally, it could mean having legal papers like a will or power of attorney.
- Seeking Professional Guidance
Consider consulting with a financial advisor or retirement planner from David Lerner Associates, Inc. Professionals offer personalized guidance based on your financial situation and goals. Their expertise aids in navigating complex financial decisions and ensures you’re on track for a comfortable retirement.
Conclusion
By diligently following these steps, you pave the way for a secure and fulfilling retirement in 2024 and beyond. Preparing for retirement is an ongoing process requiring careful planning and adjustments.
Embrace this journey with confidence, knowing that each proactive step brings you closer to the comfortable financial future you deserve.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.