How to Save for Retirement at Every Age

Your financial needs change frequently, and you may not even realize it.

The savings habits you practiced in your twenties are different from the savings habits you will practice in your 50s or later on in life – as are your investing habits. Every year, it’s important to assess your finances and your goals and to make sure that you are on track with your savings. If you are: great. If not: then you might want to change your investment strategy.

Perhaps the hardest thing for savers is to look at their savings and investment plans with bifocals.  Meaning you have to focus on the bigger picture while seeing how the smaller details create it.

What we mean by this is that you shouldn’t let your short term expenses set you back and make you lose sight of the bigger picture.

We all-too-often tend to live by the phrase “you can’t take it with you” – especially when it comes to our finances. While this may be true, that doesn’t mean you should neglect your savings. Remember: you can leave your assets for your next of kin. Additionally, you should make sure that you are setting aside enough for your later years.

So, how do you begin building a solid retirement investing plan? We’ve got you covered! Read on to find out retirement investment strategies throughout your lifetime.

In Your Teens.

Investing doesn’t have to begin when you are in your twenties. In fact, one of the greatest thing syou can do for you children is to start them young. Think about it: gifting a child or a teenager with an investment (such as stocks and teaching them about about how the market works) or teaching them how to manage their pocket money at a young age can have a huge impact on how they invest in their future and can put them on solid footing.

In Your 20s.

Okay If you didn’t start in your teens or younger, you aren’t alone. In your 20s you should start by learning, understanding and appreciating money – particularly its time value.

What we mean by this is that you have time on your side when it comes to saving! Of course, the more time, the more you save. However, if you set a strong budget in your twenties andcreated a plan to pay off any of your debts. Then, you could put yourself ahead of older savers who may just be beginning or playing catch-up.

This is because every dollar you invest now have the opportunity to compound interest. All you need to do is talk to a financial adviser and figure out a retirement plan that works for you and your current situation.

Saving for Retirement in your 30s.

While your 20s are all about discovering the best investment strategy for you, your 30s are all about balancing your spending and your saving.

At this juncture in your life, you might be starting a family, buying a house, gaining traction in your job or reaching other milestones. By this point, you are more established. This is a great thing because you have more resources at your disposal, meaning you may have taken on more financial burdens.

Your mortgage or other expenses should not stand in the way of you retirement saving responsibilities. This is the time to to plot your long term plans, such as contributing to your retirement, life insurance, and emergency savings fund and your children’s’ college fund. Remember: by planning this now, you can prevent yourself from dipping into your retirement nest egg later down the road.

Saving for Retirement in Your 40s and 50s.

In your 40s and 50s your investment plans shift toward less risky ventures and saving more for your retirement. As it should; it is at this time in your life when retirement seems like a less abstract concept and becomes clearer. You’re rounding the finish line at your workplace and you should have your finances and expenses in order.

It is during these years that you should think of your retirement in terms of an income. You know what your current costs are and how much money you need to cover them, so you should begin to think about how much you should be saving in order to continue meeting those needs. The catch is you need to figure this out without the help of a paycheck, which means either adjusting your expectations/expenses or delaying retirement to meet them.

It is also during this time that you should consider making additional contributions to your retirement account. You may also want to speak to a financial adviser to make sure that your risk tolerance is lined up with your investments; i.e.: that your portfolio is leaning a bit more conservatively to support your future income.

Save for Retirement In Your 60s and beyond.

Once you reach 60 or older, you want to make sure you are switching gears. You need to be focused on making the most of your money. Hopefully, you were able to retire and you have enough to last you throughout your retirement.

In these retired years it is important to keep up with your retirement plan. You want to make sure you are staying on top of your money so that it lasts you for as long as you need it to. Monitor your retirement accounts and be sure to continually factor in any unexpected expenses in order to adjust your withdrawals according to what you need. Additionally, you want to make sure you claim your Social Security benefits at the right time so that they can act as a supplement to your retirement income.

Now, more than any other time, you should be seeking the advice of a financial professional. This will allow you to continue you retirement while knowing that your money is in good hands. Additionally, a financial adviser can help explain your retirement income and how to make it work.

Learn to Save for Retirement Throughout all your years.

It doesn’t matter what your age is. You should always be mindful of your money and adhere to a budget while saving for your future. In this manner, you will be able to ensure that your retirement goes smoothly. Also, you don’t have to spend so much time worrying about your finances in you pre-retirement years.

Let us help you get started! Give us a call.