Making a Plan



At this stage in your life, your goal should be to begin building up enough assets to provide adequate income to meet your needs throughout retirement – accounting for factors like increased longevity, healthcare costs and inflation. To accomplish this goal, you need a plan.



How Much Money Will You Need?



To maintain your standard of living, a general rule of thumb suggests your annual retirement income should equal approximately 80% of your income the year you retire. So, if you determine you'll earn $100,000 the year you retire, you'll need to save enough to provide $80,000 per each year you are retired.















Once you've evaluated your income needs for retirement, it's time to develop a well-crafted retirement plan. We can help guide you through this often complex process, which can involve different strategies, each with possible tax deferred advantages. These strategies may include:



• Contribute to your employer's retirement plan, such as a 401(k) or 403(b), and take advantage of match programs; consider automatic payroll deduction for dollar cost averaging. Or roll over assets from a previous employer's plan.

• If you don't have an employer plan, or if you wish to invest separately from your employer sponsored plan, consider investing regularly using an Individual Retirement Account (IRA). You may wish to discuss the tax implications of both traditional and Roth IRAs to determine which best meets your needs.

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TRADITIONAL IRA​



You may be able to deduct the contribution from your income taxes, depending on participation in a workplace plan and income.



ROTH IRA​



You do not receive the income tax deduction. But, when you reach retirement age, you are able to take qualified withdrawals tax-free.*



SIMPLE AND SEP IRA​



There are other tax-deferred retirement saving options to consider if you are self employed or a small business owner



*Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted.

You should discuss any tax or legal matters with the appropriate professional.