What is Retirement Planning?Most Massachusetts residents hope to retire one day, and saving up for that goal is frequently a lifelong process. Retirement planning helps residents envision their idea of retirement and set a financial strategy in place to make that vision a reality one day.
Retirement planning involves setting goals for the non-working years later in life and then, drafting a plan that will one day help attain those goals. In the vast majority of cases, the plan involves regularly setting aside a portion of a person’s regular income for long-term savings.
Who in Massachusetts Should Plan for Retirement?Most adults living in Massachusetts ought to think about their retirement years. Those already in retirement should actively manage and monitor their savings so that they’re financially stable through their final years, and those nearing retirement may need to review their financial situation before officially ending their careers.
Additionally, younger adults can begin thinking about retirement even if their final day of work is far off. The earlier a person begins planning for retirement, the more time they have to save up for those years of life. In many cases, the additional time can make a significant difference in how large a person’s nest egg is at retirement.
What Benefits Does Planning for Retirement Provide?Planning for retirement can help make it possible to one day reach the goal of not needing to work. During the planning process, residents may gain a more accurate picture of when and how’ they’d like to retire. Without planning, financially affording a certain lifestyle later in life is sometimes extremely difficult.
When Should Residents Review Their Retirement Savings?
Generally speaking, residents are wise to review their retirement savings anytime they go through a major life change and regularly when there are no major life changes. At the very least, residents might want to talk with a financial professional about their plan if they:
- Receive a financial windfall
- Switch jobs or careers
- Receive a raise or promotion
- Get married or divorced
- Have or adopt children
- Become disabled
- Move or purchase a home
Additionally, an annual review with a professional isn’t a bad idea. Those who want to be more actively involved in their retirement plan’s management might want to conduct a review quarterly or more often.
What Retirement Savings Vehicles Are Available?
There are a number of retirement savings vehicles available to residents. Some of the more commonly used options include:
- Traditional IRAs
- Roth IRAs
- Managed Investment Accounts
- Mutual Funds
- Non-Traded Real Estate Investment Trusts
These various options come with different risks, potential rewards and possible tax advantages, and there are still other vehicles available. A knowledgeable financial professional can help residents determine which of the many different retirement savings vehicles is right for them based on their goals, income, age and other factors.
What is the Perfect Retirement Age?People have considered 65 years old the standard retirement age for a long time, but this is hardly universal. Some industries have different mandatory retirement ages, and many residents retire before or after they turn 65. Moreover, 65 is becoming a less universal standard as people live and work longer.
Ultimately, there is no one year that’s the right retirement age for everyone. The best age to retire at is highly dependent on a person’s particular situation.