So, you’ve just turned fifty. Hopefully you’re well on your way toward a solid retirement plan. But how do you know for sure?
Because life tends to bring so many surprises, there are never any guarantees when it comes to retirement savings and planning. But this quick check-up can help you decide if you’re on the right track.
What does your debt look like? Are you on a path to pay off debts before you retire? Do your monthly payments toward credit cards, personal loans, and other forms of debt feel manageable? What interest rates are you paying? If you consolidated at a lower rate, could you lower your monthly debt load and free up more funds to save for retirement?
Do you reach the maximum allowable contribution each year? For 2022, the maximum contribution to retirement plans will be $20,500. Are you on track to meet that goal? If not, increase your contribution rate. If so, what about the extra “catch up” contributions that you can make after age 50? Stash an additional $6,500 this year. You might also consider additional vehicles to prepare for retirement, such as an IRA.
What’s going on with your 401k? Do you regularly read statements? How much are you paying in fees? When was the last time you reviewed your account with a financial professional?
Do you know what to expect from Social Security? Social Security planning should begin years in advance of retirement, so that you know what to expect regarding your benefits. Set up an account on ssa.gov, if you haven’t already, and request an estimate of future benefits.
At age 50, there is a good chance your highest-earning years are still ahead of you. But this estimate will give you a good starting point for planning your benefits and strategizing the time of your claim.
What are your retirement goals? The first step toward reaching any goal is to define it in specific terms. Let’s make an appointment to discuss your vision of the future, so that we can then create a strategy to help you achieve it.