People nearing retirement often have many questions about what to do next. How much money do they need to save? When should they start drawing on their retirement savings? How can they make their money last? With experts like those at Ulta Wealth Management, you can answer all these questions and more.
When it comes to retirement planning, there’s no one-size-fits-all answer. The amount of money you need to save and when you should start withdrawing from your retirement savings will vary depending on your unique circumstances. However, you can do a few key things to help make your money last in retirement. Consider the following, then head to ultawealthmanagement.com to learn more.
Table of Contents
Start saving for retirement as early as possible.
Most people know that they should save for retirement, but many don’t start until it’s too late. One of the best ways to make your money last in retirement is to start saving for it as early as possible. The more time you have to save, the more money you’ll have in the long run.
Make sure you contribute to a 401(k) or another employer-sponsored retirement plan.
One of the best ways to save for retirement is through your employer-sponsored retirement plan. These plans, including 401(k)s and 403(b)s, allow you to save money on a pre-tax basis. This can help you reduce your overall tax bill, making it easier to save for retirement.
Contribute as much as you can to your retirement savings.
Many people think that if they start saving for retirement late, they won’t be able to save as much money. But that’s not the case. The more money you contribute to your retirement savings, the more money you’ll have to draw on in retirement. Try to contribute as much as you can to your retirement account each year.
Invest your money wisely.
There are a few different ways to invest your money when you’re retired. One option is to invest in stocks, which can provide you with the potential for high returns over the long term. However, stocks are also more volatile than other investments, so you may experience more swings in your portfolio’s value.
Avoid withdrawing money from your retirement savings too early.
One of the biggest mistakes people make regarding retirement planning is withdrawing money from their retirement savings too early. This can dramatically reduce the amount of money available to you in retirement. Avoid withdrawing money from your retirement savings until you’ve reached retirement age.
Make use of Social Security.
Social Security is a crucial component of most retirement plans. It is a federal program that provides income to retirees, disabled people, and survivors of deceased workers. First, you must understand how Social Security works and how much you can expect to receive. Then, talk to your financial advisor to create a retirement plan that includes Social Security benefits.
Talk to a financial planner.
When it comes to retirement planning, there are a lot of things to think about. If you’re unsure about what to do next, it can be helpful to talk to a financial planner. They can help you develop a plan tailored to your specific needs and goals.
A good financial planner will ask you a lot of questions about your current financial situation and your retirement goals. They’ll also need to know about your risk tolerance and how much you’re currently saving for retirement.
No matter how much money you have saved for retirement, it’s essential to start planning as early as possible. The sooner you start planning, the more time you have to save and grow your retirement funds.