To have the best retirement, you have to make the most out of the money and assets you have now.
The earlier you start thinking about it, the more likely you will have a retirement of your dreams: the freedom to do anything you want to do in the last part of your life – be it travel, work, spending time with grandchildren, sitting on the porch or anything else.
It doesn’t matter if you are already retired or just plan for it; it’s time for making retirement resolutions toward your goals. And these tips will help you reach those goals faster.
Evaluate how you are doing and how you can make your retirement better
It may sound complicated, but you don’t need a special degree to evaluate whether you are doing well or not. All you need to do is calculate your account balances, how much you are saving this year, how many years you want to spend in retirement and the age you are going to retire, and you will see how many chances you have to earn enough money that will support you during retirement.
If your chances are lower – according to experts, you should get 70% or even more – then you can consider changes that will make the situation look better for you.
Generally, the only thing you can do is to increase your saving rate, but some people also decide to stay on a job a bit longer, work in retirement or reconsider post-career spending. Everything helps to tilt the odds in your favor.
It’s time to review your retirement savings
The first thing you want to do is to make sure that your savings are invested in proper stocks and bonds. You should have enough stocks to support you during retirement. Moreover, many people do not know that they give up investment return to unnecessary fees.
One of the options is to search for low-cost funds. If it sounds too complicated, choose to the broad based stock and bond index funds. Many of these charge less than 0.2% per year in annual expenses.
The main idea is that the better you track your annual investment costs, the better life you will likely to have in retirement. If after reviewing your accounts you found your bonds and stocks mix is totally fine, your holdings are in check and you do not pay unnecessary fees, you are good.
You have your portfolio in proper shape. If that is not your situation, though, you will need to reconsider your portfolio and make necessary changes.
You should also know that anything you do within tax-advanced accounts like IRAs and 401(k)s will not have any tax consequences. But if buy or sell something within taxable accounts, you could end up with significant losses and taxable gains.
Here’s What To Do Next
If everything sounds too complicated and you don’t like doing retirement check-ups and reviewing your portfolio, contact Calvert Investment Counsel at 410-435-3270 or to schedule an appointment to meet with one of our specialists, or you can click here to request one online.
We will take you through the process step by step to ensure you are setup for an enjoyable retirement, and not have to worry about your finances.