The journey toward retirement is packed with all kinds of fascinating locations that you won't find on any ordinary map. This adventure contains destinations like the city of 401(k), Downsizing Lane and Mt. Market Evaluations – all essential stops as you fill up your retirement passport and come closer to living your dreams.
ARE YOU READY FOR RETIREMENT? Every day, another 10,000 Baby Boomers turn 65 in the U.S.1 While that's a staggering thought, what's even more startling is that about 30% of them will have no significant retirement savings.
The idea behind retirement is that you're no longer working for a living. Instead, you're living off the money you saved and the investments you made during your working years. If you're like most Americans, you have some savings, including an employer retirement plan, Social Security benefits and other investments. The question is: will it be enough to retire on time? That all depends on when you plan to retire, what you want to do during retirement, if you plan to continue your current lifestyle, and how well you've planned ahead for inflation and your future medical expenses.
START BY CUTTING EXPENSES Downsizing can be a great stamp for your retirement passport. After all, it's a good bet that you'll spend less on housing and local transportation during retirement than you are now. Of course, medical bills and the cost of traveling and leisure could offset some of those savings, which leads to a discussion about the future.
PLANNING FOR TOMORROW Depending on how full your retirement passport is today, there are investment options that could help you catch up with your retirement goals. Those may include employer plans (401(k)), personal Individual Retirement Accounts, stocks, bonds, annuities, as well as tried-and-true savings accounts.
A 401(k) is a great example. These plans are often tax-deferred, meaning you don't pay any taxes on your withdrawals until retirement. With annual IRS contribution limits as high as $24,000 for those 50 and older, these can be a great way to boost your retirement savings.
CALCULATE YOUR FUTURE One Nevada has several retirement based calculators to help you fill up your retirement passport. You'll find them all at OneNevada.org/calculators, they include:
How Much Will I Need to Retire? Use this calculator to determine if you can maintain your current lifestyle during retirement and what changes you might need to make to get more from your later years.
How Much Will I Get from Social Security? This quick calculator will help you estimate your Social Security benefits and help you decide if you should take your withdrawals early or wait.
How Much Will Inflation Affect My Retirement? Easily understand the effects of inflation on your retirement income with this forward-thinking calculator.
How Long Will My Savings Last in Retirement? This is the biggest question most people have about retirement.
How Much Can I Put into a 401(k)? Estimate your possible, annual contributions as you work toward your savings goals.
GET YOUR GEN-X STAMP The oldest among Generation X won't turn 65 until 2026. So, most Xers still have some time to plan for and save toward retirement. However, it's estimated that 40% of Gen-Xers do not have a plan for retirement2 . That could be because they're currently sending kids off to college or spending their money on everyday expenses.
If you're in Generation X and want to plot your course toward retirement, start by utilizing the calculators mentioned in this article, talk to a professional, max out your employer's retirement plan, and be realistic about your current and future needs by asking yourself some honest questions.
• Do you have kids who will need help paying for college? Could they take out loans instead?
• Do you have too much debt? Is that debt keeping you from saving enough for retirement?
• Do you plan to move into a larger home soon? Could you stay in your current home?
• Are you planning to care for your aging parents?
• Are you in the market for a second or vacation home?
WORK WITH A RETIREMENT PASSPORT EXPERT Once you've had a chance to review how much you'll actually need to save for and live in retirement, it could be time to chat with a professional who understands taxable income, inflation, market evaluations and a lot more. One Nevada Investment Services3 , available through CUSO Financial Services, L.P. ("CFS"), could help you get your passport ready for your biggest adventure yet. You'll find them at ONCUinvestments.com or stop by any branch to make an appointment.