For the Love of Your Family

How can I be financially ready to retire when the time comes?

Clarifying Questions

Q: How can I be financially ready to retire when the time comes?

— Concerned Worker

A: Dear Concerned:

Many people worry that they will be unable to make it financially when they retire. Of course, much grief can be avoided by starting early.  Learnvest illustrates the huge difference a small savings increase can make. Assuming a $100,000 a year salary and 25 years to contribute, you can increase your nest egg by over $650,000.  How? By increasing your contributions to your retirement account by one percent each year, topping out at 15 percent.

You can increase the likelihood of wanting to contribute using different strategies, too. For example, imagine your financial needs and desires at age 80, or reward yourself periodically for meeting retirement savings goals. Both of these techniques can help you stay on track to meet your long-term goals.

But what if you didn’t start early? For many of us, too much time has passed for that. Don’t fret, at least not yet. Here are some tips offered by USNews.com to get you moving in the right direction:

  • Use the catch-up rule that allows you to contribute additional money to your employer’s 401(k) program after you turn 50.
  • Downsize your home to save on both mortgage and utility costs.
  • Switch to a smaller car to save on payments and fuel.
  • Pick up extra money by working a second gig or ease into retirement by working part-time before quitting entirely.

Building a relationship with a trusted legal advisor can help, too. A Personal Family Lawyer® can help you clarify what you need and preserve your assets to support you and your family, when you are gone by learning more about you now. You can begin by contacting a Personal Family Lawyer® today to schedule a time for a Family Wealth Planning Session. That’s where to start.

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