Don’t be a Beach Bum Start Budgeting for Retirement Now!

Summer is here, bringing fun in the sun, so don’t be a beach bum and start planning for a sunny retirement. Saving for retirement can be daunting, but with the right plan, you may become more informed about retirement instead of a beach bum. Here are 210 Finacial’s four helpful tips to help you bask in the glow of financial security.

The Importance of Retirement Savings:

The age-old retirement question is: Will I make it? It’s an important question and leads to anxiety over how much you need to have saved. According to a 2023 Bankrate survey, 56% of Americans are behind in retirement saving while another 7% aren’t sure whether they’re on track or not. A general guide is that you’ll need about 25% of your annual spending when you hit retirement age. Helping ensure you have enough to last in retirement.

Start Early:

Planning for retirement is like planning a summer vacation; the earlier you start, the better. Take advantage of compound interest by investing in retirement accounts such as IRAs or 401(k)s now. Even small contributions can grow significantly over time. Nerd Wallet has some retirement saving benchmarks.

• Age 30: Aim to have at least your annual salary saved
• Age 40: Strive for three times your salary
• Age 50: Six times your salary
• Age 60: Eight time your salary
• Age 67: Ten times your salary

These numbers vary, so it’s important to tailor your plan to your needs. For more in-depth research check out Episode 15 of the Retirement Blueprint Podcast which discusses “Waiting to Save for Retirement Until the Kids Leave Home? (& How Much Money You Need to Retire).”

Retirement Accounts:

• Maximize Tax-Advantaged Accounts: Contributions to traditional IRAs or employer plans like 401(k)s can reduce your taxable income now, allowing you to save more for the future.
• Consider Roth Options: Roth IRAs and Roth 401(k)s accounts offer tax-free withdrawals in retirement, making them a valuable part of your retirement strategy.
• Asset Allocation: Diversify your investment portfolio to balance risk and reward. Consider tax-efficient strategies and investments to help maximize your returns and minimize costs.

Expect the Unexpected:

When saving for retirement, it’s crucial to anticipate not just your regular expenses but the unexpected expenses.

• Understand Your Monthly Expenses: If you’re saving for retirement, you are most likely expecting costs like what you already spend. Start by understanding how much money you spend on average a month. That should give you a good insight into how much you need to live on during retirement.
• Plan for Long-Term Care: Healthcare costs and long-term care can be significant expenses. Make sure to include these in your retirement plan.
• Prepare for inflation: Inflation can deplete your savings over time. Stay informed about how inflation might impact your retirement and adjust your saving plan accordingly.

As you soak up the sun this summer, take a moment to reflect on your retirement goals and the strategies that make them a reality. At 210 Financial, we’re committed to helping you navigate the complexities of retirement planning. Contact us today to start your journey towards a brighter, retirement!

---

210 Wealth Management, Inc., d/b/a 210 Financial, is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. 210 Financial, Form ADV Part 2A & CRS can be obtained by visiting: https://adviserinfo.sec.gov and search for our firm name. Insurance products are offered through 210 Financial, Inc. d/b/a 210 Financial.