Retirement Planning: Save Smart, Save Early
For some, retirement may seem like a distant concept, while for others, it’s a pressing concern. As a recent Finance and Economics graduate from James Madison University (and a financial planning enthusiast!), I view a 40+ year time horizon as a prime opportunity for strategic financial planning and saving.
Why Should I Save for Retirement?
As Benjamin Franklin wisely noted, “If you fail to plan, you are planning to fail!” Transitioning from the contribution phase to the distribution phase with a solid plan in place can lead to a more stress-free and fulfilling retirement. This could mean taking on a passion project, soaking up extra time with your family, or checking items off your bucket list. By saving and planning ahead now, you significantly enhance your chances of a successful retirement.
How Much Should I Be Saving for Retirement?
With so many recommendations available, it can be challenging to determine how much to save. Some sources suggest saving 10%, 15%, or even up to 25% of your income. However, the ideal savings rate varies based on factors like retirement income sources, spending needs, risk tolerance, current savings, and your time horizon. As one of my college professors used to say, “It depends.” The 10%, 15%, and 25% figures are general guidelines; for a more precise savings plan, take into account the factors mentioned above.
How Do I Save for Retirement?
We typically advise saving through employer-sponsored retirement plans, individual retirement accounts, and taxable brokerage accounts for retirement savings. Each account type offers various benefits, eligibility requirements, and tax implications. Factors such as income level, tax bracket, retirement goals, and existing savings influence the optimal savings strategy.
Start saving by setting up automatic contributions to your retirement accounts to ensure consistent savings. Review your investments periodically to adjust for any changes in your financial goals. Additionally, aim to increase your contributions as your income grows, taking advantage of compounding returns over time.
Quick Tip: Many people accidentally leave their investment contributions uninvested. Be sure to verify that funds are properly allocated and invested.
If you’re interested in learning more about retirement savings and planning, please don’t hesitate to reach out via phone (703) 652-6255 or email info@wolfgroupcapital.com. Our team at Wolf Group Capital Advisors is passionate about helping you gain clarity on what retirement looks like for you!
Fun Fact
Contrary to popular belief, the term "IRA" stands for "Individual Retirement Arrangement," not "Individual Retirement Account."
Sincerely,
Associate Financial Advisor
About Wolf Group Capital Advisors
At Wolf Group Capital Advisors, a comprehensive wealth management firm and Registered Investment Advisor (RIA) based in the Washington, D.C. metropolitan area, nothing is more important than the fiduciary responsibility we have in managing your wealth. Taking the utmost care, we focus on providing advice tailored to your specific circumstances. With more than two decades advising U.S. expatriates and non-US citizens employed by international organizations, we are qualified in investment strategies addressing global issues. Empathy and curiosity—combined with our experience in life planning and investment management—enable you to explore a wider set of possibilities that can lead to a fulfilling life you’ve worked hard to attain.
Disclosure:
The information presented is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.
Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website. Past performance is not a guarantee of future results.