You have different concerns at each stage of your life - the same goes for retirement planning. In your 20s you may focus on paying off debt. Your 30s may bring on house payments and a partner to share the wealth. You may have more responsibilities - like children - in your 40s. When your 50s arrive, college costs could be your focus. Once you hit your 60s, and decide that you're ready to retire one day, it may be too late. Here are ways you can plan for retirement by the decades, so you aren't hit with a retirement planning realization too late in life.
These years are all about preparation and laying a foundation. You should be working to build a cash reserve and saving as much as you can. Create a debt payment plan. Sign up for your company’s 401(k) or save into an IRA. Invest for growth.
Maintain the cash reserve you’ve started. Be careful with how much debt you take on when buying cars or a house. Continually increase your 401(k) contributions with a target set to max it out (currently set at 18,500k/year)
Continue to maintain your reserve. Make sure you’re saving for your kids’ college, weddings, and other needs, but don’t completely sacrifice your needs for theirs. Don’t stop saving for retirement even if other events come along. Try to increase the percentage that you save each year. Utilize your after-tax savings in a 401(k) if you’re able.
Create your target retirement portfolio and adjust it annually if needed. Stay on track with a plan, but start thinking about the soft side of retirement. Consider where you will live, what you will do, and what you will spend. These are easy questions to put on the backburner, but you’ll want to have a plan when you enter the next stage of your life.
You made it! You worked hard to get here, so go out and enjoy the benefits of your hard work. Retired life is supposed to be a new adventure—go travel, start a new hobby, or do the things you never got around to doing.
United Capital Financial Advisers, LLC (“United Capital”), is an affiliate of Goldman Sachs & Co. LLC and subsidiaries of the Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management and financial services organization. Investing involves risk and clients should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions.
The information contained in this blog is intended for information only, is not a recommendation, and should not be considered investment advice. Please contact your financial adviser with questions about your specific needs and circumstances. This blog is a sponsored blog created or supported by United Capital and its employees, organization or group of organizations. This blog does not accept any form of advertising, sponsorship, or paid insertions. Certain authors of our blog posts may be influenced by their background, occupation, religion, political affiliation or experience. It is important to note that the views and opinions expressed on this blog are that of the owner, and not necessarily United Capital Financial Advisers. As a Registered Investment Adviser, United Capital does not allow any testimonials on their blog, and any comments deemed as such United Capital will remove.
United Capital does not offer tax, legal, or accounting advice; therefore all articles should not be taken as such. Readers should obtain their own independent legal, tax or accounting advice based on their particular circumstances. All referenced entities in this site are separate and unrelated to United Capital. Any references to any specific commercial product, process, or service, or the use of any trade, firm or corporation name is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by United Capital.