For many people, retirement feels like something that is far off into the future. The most common age to retire in the US is 62 years old. Whether that's years in the future for you or just around the corner, planning for your retirement is a must no matter how far away you are from your retirement date. If you are thinking about retirement, there are a variety of things to consider and plan for. It's more than just saving a portion of your paycheck each month. Here's what you need to know when it comes to your retirement.
How Much You Actually Need
The first thing that you should consider when it comes to retiring is how much money you will actually need. This can vary significantly depending on your lifestyle, health needs, and total cost of living. There's no magic number when it comes to your retirement fund. However, many experts recommend having around 10 times your final salary in savings when you retire. So if you end your career making $100,000, you will want around $1 million in the bank. While this is a good rule of thumb, you will want to look closer into your potential future needs while saving.
A Professional Can Help
If you are unsure if you are saving enough or that you are using your current financial resources to your full advantage, a retirement planning advisor can help. They will help you understand what your goals are for retirement and help you come up with ways to achieve these goals. If you are close to retirement, they can advise on you on the best time to start withdrawing social security, how to rearrange your investments during retirement, what the right withdrawal rate is, pensions, taxes, and much more.
The Cost of A Retirement Planning Advisor
While retirement planning advisor services can help save you money in the long run, there are upfront costs that you need to consider when it comes to these services. If you are seeking out a single retirement planning consultation you will typically be charged an hourly fee. These fees range between $120 and $300 per hour on average. For ongoing retirement planning consultation services you will typically pay a fee of 1 to 2 percent a year on the assets that they manage for you. Some planners will charge a flat fee while others charge annual or quarterly fees.
If you are considering your retirement, there are a few things to keep in mind. First, you need to know how much you will need to retire. It's important to factor in things such as your lifestyle and cost of living when saving. In order to stay on track, hiring a retirement planning advisor can be very helpful. The cost of hiring a professional can vary, but you will likely end up in better financial shape during your retirement if you seek out professional help.
When it comes to making things right for you and your family, there are only so many times you can struggle with finances. I didn't used to care too terribly much about finances, but after dealing with near bankruptcy more than a few times, I knew I had some big decisions to make. I started working with a financial planner to address various issues that we were facing, and we realized that there were some mistakes we kept making time and time again. After going through and evaluating our spending, we made some big steps towards clearing up our finances. Read more on this website to learn about finances.