Retirement planning: Start early or start late – just start
I hear it more often than I care to admit. "I'm too young/ busy/ indecisive etc. to think about retirement" or "I don’t have enough saved up to worry about investing for retirement". Or the opposite; "It's too late to start/ I'll never be able to save enough/ I'll never be able to retire. But I tend to remind people that life involves a series of trade-offs.
'The chief cause of failure and unhappiness is trading what you want most for what you want right now' Zig Ziglar
Yes, if you start saving earlier, it is generally easier to come up with a workable plan that funds more of your wants/needs throughout your lifetime. But starting late doesn’t mean that you cant get there also. You may just have to do a little more trading.
Picture your retirement
To fully understand your income needs, you need to know what a successful retirement lifestyle looks like to you. It can be difficult to imagine in your younger years, but depending on the size of your dreams, it may take some time to accumulate the wealth you will needs to make those dreams a reality.
Saving now can still pay off
Continue to save as much as you can—the money you save now still has time, maybe even decades, to work for you. For 401k plans and IRAs, if you are 50 or older, you may be able to take advantage of catch-up opportunities to potentially increase your retirement income.
Next steps
Retirement Income Planner
Work with your financial planner to create a comprehensive plan to help make your money last by projecting out your expenses against potential income sources in different kinds of market conditions. [See: “What’s Your Number?”]
So starting early is better. If you are starting later, it may still be possible, so just get started. Making informed decisions at this stage can help you build a better retirement strategy.
'The chief cause of failure and unhappiness is trading what you want most for what you want right now' Zig Ziglar
Yes, if you start saving earlier, it is generally easier to come up with a workable plan that funds more of your wants/needs throughout your lifetime. But starting late doesn’t mean that you cant get there also. You may just have to do a little more trading.
Picture your retirement
To fully understand your income needs, you need to know what a successful retirement lifestyle looks like to you. It can be difficult to imagine in your younger years, but depending on the size of your dreams, it may take some time to accumulate the wealth you will needs to make those dreams a reality.
Saving now can still pay off
Continue to save as much as you can—the money you save now still has time, maybe even decades, to work for you. For 401k plans and IRAs, if you are 50 or older, you may be able to take advantage of catch-up opportunities to potentially increase your retirement income.
- Max out your 401(k) with up to $17,500 in annual pre-tax contributions, plus $5,500 in catch-up contributions for those over age 50.
- Open an IRA to expand your savings potential, with up to $5,500 in annual potential tax deductible contributions, plus $1,000 in catch-up contributions for those over age 50.
- Consider lifestyle changes to save even more now and better position yourself for a secure retirement.
- Understand tax benefits and the most advantageous options for your retirement savings.
- Invest in a tax-deferred annuity with no IRS contribution limits* and let your investment grow tax-deferred.
Next steps
Retirement Income Planner
Work with your financial planner to create a comprehensive plan to help make your money last by projecting out your expenses against potential income sources in different kinds of market conditions. [See: “What’s Your Number?”]
So starting early is better. If you are starting later, it may still be possible, so just get started. Making informed decisions at this stage can help you build a better retirement strategy.