It’s difficult to think ahead and even harder still to plan, 20 to 30 years in advance. However, it is crucial to a prosperous retirement that you start planning now, or be left wondering why you never invested in your future when retirement age rolls around.
According to the Government Accountability Office, “About half of households age 55 and older have no retirement savings (such as in a 401(k) plan or an IRA).” This number is alarming because most retired Americans rely solely on their Social Security for monthly income. The amount of money offered by Social Security benefits in and of itself is barely enough to live off of, and is in danger of facing serious cutbacks by 2016.
What does this mean for you? Leaving your retirement up in the air and hoping to survive off the benefits of Social Security alone will not be enough to give you the retirement you worked for. Start planning now, and consider your options. Meeting with an expert to plan out your retirement is the best place to start. They can sit with you and realistically go over specifics, such as how much income you need to maintain your current lifestyle or the one you want, planning for future medical expenses, unexpected home repair or assistance for adult children or grandkids. Coming up with a retirement plan is not simply about calculating how much income you’ll need to travel and dine out, life still moves forward even after you’ve stopped working.
There are numerous investment opportunities for you to choose from, including traditional and Roth IRAs, Solo(k) Retirement Plans, and 401(k)s. Most plans allow your money to grow tax-free, but tax when the money is withdrawn. Some, like a Roth IRA, do not. The details of the different types of savings accounts can and should be considered and compared to produce the most promising results.
As more and more Americans are opting to retire in their later years due to insufficient funds, we at Specialized Trust Company encourage you to work on your retirement plan today while you have a substantial amount of time to build up savings. Our highly experienced experts frequently give seminars, speak on the radio, and offer advice wherever they can because their commitment is to helping those such as yourself invest in yourself, your family, and your future. Contact us today to get started!
- Office, United States Government Accountability. RETIREMENT SECURITY Most Households Approaching Retirement Have Low Savings (n.d.): n. pag. Web. 03 Nov. 2015. <http://www.gao.gov/assets/680/670153.pdf>
- “Will the Social Security Disability Fund Dry up in 2016?” CBS News. N.p., 22 July 2015. Web. 03 Nov. 2015. <http://www.cbsnews.com/news/will-the-social-security-disability-fund-dry-up-in-2016>