When the time comes to start planning for retirement, the process can seem very daunting. It’s a new stage of life that may seem unpredictable and confusing. It’s hard to know where to begin and how to achieve your dream retirement. While retirement can feel very intimidating, the truth is you can receive the freer future and peace of mind you are looking for with the proper planning techniques and resources. Retirement is one of the biggest financial decisions a person can make; so take the time, planning, and savings this next stage of your life deserves.
What is Retirement?
So how does retirement work and what is it? Retirement, simply put, is the stage of life where one chooses to leave the workforce and live off their own income and savings. By wisely investing for many years, you are potentially able to live comfortably and freely without working for the rest of your life. Choosing a retirement plan can be very helpful in your years out of the workforce. How this new stage of life looks and feels depends on your personal preferences, your standard of living, the number of years you are retired, and many other factors. Retirement takes many years of financial planning, so it’s best to start saving as early as possible to prepare.
Retirement Age and Benefits
While the average age of retirement is 65, you can retire at any age provided you have the savings and investments for it. However, keep in mind that the government will often penalize those who draw on retirement savings before turning 60.
For those who would not like to stay in the workforce their whole life, there are many benefits to choosing to retire. If all of your finances are truly in order, retirement can take a huge burden off your shoulders. With most of the financial planning and work hours out of the way, you can spend more time on the activities that bring you joy. Whether that’s painting, writing, or spending time with friends and family, you are able to focus your time on the things that bring you personal fulfillment.
The golden rule with planning retirement is the sooner, the better. After all, the sooner you start, the more time you have to save up and allow your money to grow. Retirement planning involves strategically saving, investing, and distributing money in ways that sustain you financially. There are many different types of retirement plans and services you can use to help you better accumulate the money you need.
Types of Retirement Plans
Social Security: The Social Security Retirement benefit is a monthly check that replaces part of your income when you stop working or reduce your hours. While this benefit may not replace your entire income, it’s still very useful when it comes to accumulating money during retirement.
Employee-Sponsored Plans: Employee-Sponsored Retirement plans provide a benefit offered to employees that guarantees they will receive a certain amount of money in retirement. These plans can also include a variety of other benefits such as healthcare and tax-deferred income.
IRAs: Individual Retirement Accounts (IRAs) are a type of long-term savings account that you can set up for yourself. This type of retirement plan is set up at a financial institution that allows for your investments to be saved with tax-free growth.
How to Save for Retirement
You can save for retirement in any number of ways. Saving and preparing as early as possible is one of the best ways. Applying for a retirement planning service such as an employee-sponsored plan can also be a big help. You can look into annuities, government-based and public-employee-sponsored funds, and even specific investment vehicles that aren’t strictly for retirement. Overall, there are a variety of ways to save for retirement, and using multiple methods and strategies often can be the most productive way to prepare. If you need additional expertise and assistance, many retirement companies also offer financial advisors that help you create strategies for your future goals and needs.
How to Make the Most of Your Retirement
Now that you’ve successfully done all you can to prepare for the future, how does retirement work once you officially leave the workforce? Well, a lot of that is up to you and what you’re looking for in your work-free days. Remember to keep your finances in order and organize your money. If not, you might end up leaving retirement early just to make ends meet. If you’re planning on moving, look for cities and towns that have a variety of activities that you find enjoyable. Try to keep your brain and body active with the things that excite you.
If you’re still trying to figure out what you want out of your retirement, Oxford Advisory Group is here for you. We strive to give you the help you need to prepare and enjoy all your retirement has to offer. Schedule a meeting with us today at 407-495-2004.
This report was prepared by Oxford Wealth Group, LLC, a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Form ADV Part 2A & 2B can be obtained by visiting https://adviserinfo.sec.gov and search for our firm name. Neither the information nor any opinion expressed it so be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice.
This is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this report.
Ready to Take The Next Step?
For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.