Daily Court Reporter - News Financial planners advise late-comers to take the retirement-planning plunge
Financial planners advise late-comers to take the retirement-planning plunge
KEITH ARNOLD, Daily Reporter Staff Writer
A 50 year old just getting started in earnest on a retirement savings plan shouldn't preoccupy himself with the circumstance.
Rather, he should get to it, financial planners say.
Traditional magazines and online publications offer a number of steps that the professionals advise for prospective retirees who are late to the task.
For those individuals who feel the need to do some catching up, Forbes magazine advised updating the financial plan.
"You'll need a good estimate of your spending needs in retirement as well as the resources you expect to tap (Social Security, a pension, savings) to see just how far behind your savings goal you might be," Ashlea Ebeling wrote for the magazine.
She spoke to a financial planner who told her that an individual's savings might be on one trajectory, while it should be on another.
Another tip: Maximize tax breaks.
Stash away as much retirement funding as possible in tax-favored retirement accounts, the piece offered. Workers 50 and older can save up to $24,500 in a 401(k) or 403(b) and up to $6,500 in an Individual Retirement Account for 2018, Ebeling reported. That's an additional $6,000 and $1,000 per year, respectively, according to an AARP report.
Forbes also advised swapping debts for savings.
"Once you've paid off any large debts, such as your mortgage or a car loan, consider using that money to fund a savings plan," Ebeling wrote. "To make certain you stick with the plan, set up an automatic withdrawal program so the money is taken directly out of your paycheck or your checking account."
AARP suggested these individuals drop any unnecessary insurance.
"You may have signed up for a policy years ago with your spouse or children in mind, but they might not be financially dependent on you anymore," Brandon Gobel wrote for the senior advocacy organization.
Finally, Forbes prompted readers to practice retirement. Downsize now and make the effort to live on the post-retirement monthly income. Ebeling noted individuals are likely to save more and determine whether they need to work longer.
Date Published: January 18, 2018