Planning your retirement in 2024

5 Retirement Planning Tips to Steer You Towards a Golden Future

New Year’s resolutions often fizzle out, but securing your golden years shouldn’t be one of them. Here are 5 key practices to set yourself on the right track for a comfortable retirement:

1. Focus on the controllable: News feeds are full of unpredictable events, but don’t let them cloud your retirement vision. Instead, focus on what you can control: maximizing savings, managing spending, and diversifying your investments. These evergreen strategies remain crucial throughout your retirement journey.

2. Check your progress: It’s crucial to take stock of your retirement readiness regularly. Ask yourself: Am I on track to afford my desired lifestyle? Consider factors like your age, savings, income, and desired income replacement rate. Estimate Social Security, returns, and inflation to identify any adjustments needed to stay on course.

3. Plan for the unexpected: Life throws curveballs, so be prepared. Build an emergency fund covering 3-6 months of expenses. This safety net protects your retirement track even if you face unemployment, healthcare costs, or other unforeseen expenses.

4. Diversify your income sources: Don’t rely solely on tax-deferred accounts like 401(k)s. Consider a mix of taxable, tax-deferred, and tax-free (Roth) accounts for flexibility and tax control. Today’s lower tax rates may sunset after 2025, making Roth conversions an attractive option to move assets into tax-free accounts.

5. Stay calm, stay invested: While cash might seem tempting, resist the urge to abandon long-term investments. Market timing is tricky, and missing out on rebounds can hurt your returns. Stay invested, especially during volatility, to achieve better retirement outcomes aligned with your long-term goals.

Remember: These are starting points. Tailor your plan to your unique needs and goals. Consult a financial advisor for personalized guidance.

Start planning today to ensure a bright and secure retirement!