After years of early mornings, late nights, and working tireless hours to create a comfortable living, every individual deserves some time off. Or, at the very least, the chance to plan for retirement will allow them to enjoy their golden years without stress.
The problem is that few of us know how to properly save for retirement. We contribute to our 401ks and hope for the best but often fall short. If you’re nearing retirement age or just starting to think about saving for the future, Bill Schantz’s guide will give you all the information you need to create a solid retirement plan.
Bill Schantz’s Retirement Planning Guide
Figure Out Your Timeline:
The first step in any retirement planning is to figure out when you want to retire. This will give you a target date to work towards and help you determine how much money you’ll need to save.
If you’re unsure when you want to retire, start by thinking about what age you’d like to be when you stop working. Do you want to retire as soon as possible? Or do you want to keep working into your 60s or 70s? Once you know when you want to retire, calculate how many years that is from your current age. This will give you a rough estimate of how much time you have to save for retirement.
Calculate Spending Needs:
The next step is to calculate how much money you’ll need to save to cover your retirement expenses. This number will vary depending on your lifestyle and spending habits, but there are a few general rules of thumb you can use to estimate your costs.
Bill Schantz recommends saving enough to cover at least 3-5 years of living expenses. This will give you a cushion in case of an unforeseen event, such as a job loss or medical emergency.
Next, consider what your lifestyle will be like in retirement. Will you travel often? Do you plan to downsize your home? Will you have any major one-time purchases, such as a new car or boat?
Assess Risk Tolerance:
Your risk tolerance is the amount of risk you’re willing to take when investing your money. This number will vary depending on your age, investment goals, and personal preferences.
There are two main types of risk when it comes to investing: market risk and credit risk. Market risk is the chance that your investments will lose value due to changes in the stock market or other economic conditions. Credit risk is the chance that a borrower will default on a loan, which could cause you to lose money.
Generally speaking, younger investors can afford to take on more risk because they have time to recover from losses. As you get closer to retirement, you’ll want to shift your investments into less volatile assets, such as bonds and cash.
Stay On Top Of Estate Planning:
Estate planning is an important part of retirement, yet it’s often overlooked. Your estate is everything you own—your house, savings, investments, and personal belongings.
If you die without a will, your assets will be distributed according to your state’s laws of intestate succession. This means your assets could go to relatives you may not have even been close to.
To avoid this, it’s important to have a valid will that outlines how you want your assets to be distributed. You should also consider setting up a trust to help manage your assets after death.
A good estate plan will also include Powers of Attorney for financial and medical decisions. This gives someone you trust the legal authority to make decisions on your behalf if you cannot do so yourself.
Bill Schantz’s believes retirement planning is important for everyone, regardless of age or income level. By taking the time to calculate your goals and risk tolerance, you can ensure a comfortable retirement