How Savvy Investors With $500,000+ Build Their Retirement Plan
Retirement planning is key to long-term financial security. The right retirement plan grows your wealth and creates a reliable financial cushion. Learn how savvy investors plan for retirement and apply their strategies to your plan to help achieve your retirement goals.
What Is a Retirement Plan?
A retirement plan includes your strategies for saving, investing and distributing your money during retirement. These strategies must account for your assets, income, liabilities, future expenses, life expectancy and financial goals.
You can start planning for retirement at any time. Keep in mind that starting sooner allows you to take advantage of compounding interest.
How to Plan for Retirement
Savvy investors follow these steps to maximize their retirement plans:
1. Understand Time Horizon
A time horizon is the length of time you expect to hold an investment until you need to cash in on it. Evaluate your current age and your expected retirement age to determine how long you need your money to last. The more time between the two, the higher level of risk your investment portfolio can withstand.
2. Set Retirement Goals
Building a successful retirement plan means setting clear, realistic goals. These should include:
- When you want to retire.
- How much money you want to have when you retire.
- How much you want to save each month.
Evaluate your time horizon and monthly expenses to help you determine the best strategies to achieve these goals.
3. Assess Risk Tolerance vs. Investment Goals
One of the most vital aspects of retirement planning is balancing risk and return. You must determine what level of portfolio risk you’re comfortable with to reach your retirement goals. The right balance for you depends on your specific preferences and time horizon.
4. Understand Estate Planning
Estate planning is crucial to a well-rounded retirement plan. It allows you to choose who will inherit your valuables and possessions, ensuring your family’s financial security. Estate planning also helps you reduce inheritance taxes on what you leave behind to minimize the burden on inheritors.
5. Check and Update Your Plan Regularly
Your needs and goals for retirement change over time. It’s a good idea to review your retirement plan annually to ensure the strategies still make sense for you. You should also update your plan after any major life event, such as a job change, marriage or loss of a loved one.
6. Work With a Financial Advisor
A financial advisor helps you create a retirement plan that works best for your needs and goals. Financial advisors have the expertise to help you maximize your portfolio and save you the time and stress of figuring it all out yourself.
Contact Fort Pitt Capital Group for Retirement Planning Services
The experienced financial advisors at Fort Pitt Capital Group make it easy for you to plan for retirement. We create a plan tailored to your unique needs and preferences to achieve financial success on your terms. Contact us today to schedule a meeting with one of our retirement specialists.