Planning & Saving for Retirement

The best way to plan for retirement is to start with the end in mind.  Where is retirement?  What does your lifestyle look like?  What are you doing in retirement?  Whether it be traveling the world, part-time work, or a second career; no two retirements are alike, so we believe that no two retirement plans should be either.  We focus our service and planning on your goals and our advisors' advice on what is required to make those goals a reality.  Adjustments will often be necessary throughout your journey to retirement, but we will be here to provide guidance at every step.

Whether you are just beginning to save or have only a few working years left, having a savings and investment plan for the golden years is a key component to a successful and sustainable retirement.  There are many “rules of thumb” for retirement savings, such as saving 15% of your earnings.  While this may be adequate for some, it could also be too much or not enough for others.  There are many factors to consider when determining the amount someone should be saving for retirement, including: your current age, the age at which you would like to retire, your current income, amount of income that will be needed in retirement, debt, social security and your investment strategy.  At Gabor, we enjoy learning about you and taking the time to understand what your goals and dreams are, so that we can help you achieve a successful retirement, the way you envision it.

As your personal circumstances evolve over time as a result of promotions, cost of living increases, changing employers or changing careers altogether, your investment strategy may need to be adjusted to reflect these changes.  You will need to review your current savings rate for retirement to make sure it is still sufficient to reach your goals.  It is important to not only consider your current situation, but also the tax-type of the plans in which your investing to ensure you are continually best positioned to accomplish your goals given the current environment.  Rebalancing the investments in your portfolio to make sure they are in alignment with your time horizon and tolerance for risk is important and should take place annually, at a minimum.  A Gabor financial advisor can help guide you on your path to efficiently achieving your financial goals for retirement.

Medicare does not kick in until age 65, and the cost of healthcare outside of an employer’s plan can be expensive.  If you or your spouse have a goal to retire prior to age 65 it is important to have a plan for bridging the gap between your retirement and age 65.  Even if you are planning to retire at or after age 65, there’s still planning to-do in this arena as supplemental insurance to Medicare is usually needed to provide adequate protection.

Additionally, according to the U.S. Department of Health and Human Services, 70% of people age 65 or older will need some degree of long-term care during their lifetime.  This is too large of a statistic to not talk about.  Having a plan for the potential increased expenses in Retirement due to long-term care needs for you or a spouse is important.  We can help you explore various ways to address these risks.

Being debt free in retirement is a desirable goal by many, and advisable when possible.  Certainly, paying off high interest debt should take precedence at any point, but when it comes to a mortgage on your home, for example, paying it off prior to retirement can be freeing.  This said, maintaining a mortgage in retirement, given the current low interest rate environment, is not a bad thing so long as you have sufficient retirement income, and/or assets to continue funding this expense without concern.  

Often the key determining factors of whether or not we will achieve success at something we set out to do are discipline and commitment.  We can know the healthiest diet and best exercise plan in the universe, but if we do not stick with it, we won’t get the fitness results we want.  We can apply this same philosophy to anything we set out to do- especially planning for retirement.  We will truly get out what we put in.  We only get one working life, and subsequently one retirement life.  Gabor and your financial professional are committed to your long-term financial success.  We only succeed once you’re confidently on your personalized path to a financially secure Retirement.  Let us help you live your best financial life.

VIDEOS

• The Cost of Procrastination  Procrastination can be costly. When you get a late start, it may be difficult to make up for lost time. 
• How to Retire Early  Retiring early sounds like a dream come true, but it’s important to take a look at the cold, hard facts. 

ARTICLES

• Where Will Your Retirement Money Come From?  Retirement income may come from a variety of sources. Here's an overview of the six main sources. 
• Traditional vs. Roth IRA  One or the other? Perhaps both traditional and Roth IRAs can play a part in your retirement plans.  

CALCULATORS

• Saving for Retirement 
• Inflation & Retirement  Estimate how much income may be needed at retirement to maintain your standard of living. 
• Roth 401(k) vs. Traditional 401(k)  This calculator compares employee contributions to a Roth 401(k) and a traditional 401(k).