Retirement Planning 101 Series
It ’ s hard to believe that we are in the process of beginning a new year . Many of us are asking , “ Exactly where did 2016 go ?” As we start a new year and we evaluate certain aspects of our lives , it is a great time to also evaluate our overall Retirement Plan . The good news is that there are numerous avenues available to address this future need . The bad news is that “ there are numerous avenues available to address this future need .” This can sometimes make it very complicated and , at other times , just plain overwhelming . The key aspects of a successful long term retirement plan are : ( 1 ) to educate yourself on all of the available opportunities for saving and investing toward this long-term goal , ( 2 ) to begin to use the most feasible vehicles available to you , and ( 3 ) to track your progress at specific intervals of time .
Reagan Financial Planning , LLC will begin a series over the next few months on how best to navigate this important issue . Most of us have certain aspects of a retirement plan in place , but we also believe we could be doing more to maximize our overall potential regarding this long-term goal . In this first segment of our series , we will explore the foundation of most retirement plans , that being their employer provided plan . A good first step for your retirement planning is to fine tune what you already have in place . For most of us , this involves an employer sponsored retirement plan such as a 401k or 403b program . These are plans in which you contribute a certain percentage of your pretax salary to the plan , with typically a portion of your contribution matched by your employer . This is where the first “ must do ” retirement planning situation occurs for those fortunate enough to receive a matching contribution .
If your employer matches any percentage of your contribution , it is a “ must do ” that you contribute at least enough to receive this matching figure . For most employers that match contributions , this figure usually falls into the 3 % to 5 % range . If you are not sure of this percentage , ask your plan administrative contact at your workplace . A personal target of 10 % of your paycheck contributed to your employer sponsored plan is a great goal , but the employer match figure should be your absolute minimum contribution amount . The 10 % figure contributed from your pretax income may seem hard to achieve based on your present budget , but remember , it is not a dollar for dollar reduction in your paycheck since all of the taxes are deferred on this amount ( unless a Roth 401k option has been chosen ). This will make the reduction in your take home pay much less than the actual additional amount contributed to your retirement account .
In our next segment , we will begin to look at how the funds in your retirement account should be allotted based upon your specific time horizon for needing the funds , as well as explore some of the other investment vehicles available to help build a solid foundation for your retirement plan .
Your Financial Success is Our Passion Please contact Mark for more information , and to also inquire about our one-hour complimentary consultation and a 1 year complimentary subscription to “ Kiplinger ’ s Personal Finance ” magazine . 770.658.9440 - mark @ reaganfinancialplanning . com www . reaganfinancialplanning . com State of Georgia Registered Investment Advisor