Retirement planning for every age
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It should not be about trying to out fox your future predicments. However, just leaving your future to the faith of the world is unwise. Only you really care about your plans.
Age greatly affects how you plan for retirement. Predictably, your income needs and risk tolerance will be different in your 20s than they are in your 50s.
Adjusting your 401(k) so that it reflects your age is essential to reaching your retirement goals and to ensuring the success of your 401(k).
Here are some helpful tips on how you should approach your retirement strategy and your 401(k) plan based on your age:
Your 20s: This truly is the best time to start contributing to a retirement plan, time is on your side and compounded growth the name of the game!
Your 30s: That’s the age when many of us go through major transitions: marriage, kids, mortgage. Make sure that you factor in retirement savings with all the other expenses you have.
Your 40s: Another major fork in the road, retirement is not that far out anymore. At this age, you should be monitoring and adjusting your investment goals as well as your portfolio quarterly or at the very least, annually.
Your 50s: Now is the time to be more conservative with your investment selection and asset allocation. For example, what would happen if your nest egg disappeared because of a high-risk investment? You can’t afford for that to happen since you will need the money in a few years.
Your 60s: At this age, it’s all about withdrawal strategies and estate planning and what you’ll do with the rewards from years of smart planning and saving!
The best place to start? Contact your bank or ask your trusted friends for a referral to a Financial Advisor who can help you start planning your dream retirement.
This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses. For more information or a free consultation on your 401(k) plan or to find out if Roth is right for you, call John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 ext 828.
November 7th, 2008 at 6:13 pm
Thanks for the article. I enjoyed it. It is important for people to plan for retirement at all ages. It seems like most people don’t even think about retirement until they are in their 50s or 60s. As you said above, you should start thinking about it as early as age 20.