Social security is a nice addition to one’s pension or retirement fund, but most likely is not enough to sustain you through your retirement years. Your personal savings and investments are the best bet when trying to cover the short fall.
The first step towards retirement is to start saving now. Most financial planners recommend that you save 10% to 15% of your income for retirement, starting in your 20s. The best way to get a true picture of what you will need to cover the gap between your social security and retirement needs is to estimate how much you need each year extra. On average you need about $15 to $20 in savings to cover each dollar of the annual difference between your income and your expenses.
Besides saving your money now while you are employed, investing is a good idea. Basically there are three investment categories, which include stocks, bonds, and cash. Your retirement accounts should contain a mix of bonds, stocks and a small amount of cash. Real estate can also be included as well.
John Labunski advises his clients to stay on the side of safe. It’s better to be safe than sorry when it comes to making sure you have enough money to live on once you can no longer work. His company Lincoln Wealth partnered with Fund Architects LLC., a move aimed at making sure each client’s goals and needs are met. Fund Architects is a full -service money management firm who share the belief that preventing loss is the true key to success for seniors.
John Labunski is a financial advisor and the CEO of a reputable investment company. One topic he must tackle daily with various clients is how to plan for retirement. Failing to have the right plan in place can be disastrous. There are a few things that people can do in anticipation of their retirement. First of all, make sure to save as much as possible while you are still working. Sock away any bonuses, extra tax money, etc.
Assess your health and longevity. Are you a smoker? Do you have questionable health now? These factors can help you determine how long your money needs to stretch. It can also help you plan for medical expenses that may arise.
Once you’ve calculated your life expectancy, you can gauge how much you’ll be able to withdraw from your portfolio without going through your entire savings. Most experts agree that you can take out 4% of your balance in year one of retirement, if your life expectancy is 25 years.
As an extra insurance to your current portfolio, put some of your portfolio in a deferred-income annuity, also known as a longevity annuity. These annuities differ from other annuities, which pay out right away. They take about 15 or 20 years or more, to mature. It can be thought of as old age insurance.
John Labunski provides full financial, wealth and retirement services to all his radio listeners and potential clients. He wants to make sure each client’s goals and needs were met, so that they can enjoy their golden years.
John Labunski has found that over the years, there is probably nothing more stressful than money troubles. Bad money habits can take a toll on one’s health, whether it’s bills, credit card debt or bad investing. Studies have actually shown that those people who save wisely suffer less stress and therefore have better health. You don’t have to make a ton of money to save wisely. According to investment counselors, finding ways to save regularly not only helps provide financial security but may also contribute to keeping people healthy long enough to enjoy their retirement. Here are some ways to start saving today.
Probably the easiest way to save for the future is a 401(k) plan. Many of them now incorporate features like auto enrollment, and auto escalation of contributions. Most would be savers like these features and would enroll in plans that automatically contributed 6% of their pay. The hardest part of saving is allocating those funds every month, but the earlier you get started, the better. For example, let’s say you make $41,000 a year, and saved 8% of pay. It would be necessary for you to begin saving at age 20, so by age 65 your retirement income would be $29,000 a year.
John Labunski has worked with many newbie investors and helped them save for the future. He began first by helping his mother resolve her own financial crisis after following the advice of a well-known financial investment advisor. It was then that he knew he wanted to start his own company and help people plan for their retirement and show them how to invest wisely.
John Labunski knows that sometimes it seems hard to find that extra money to invest in your future. Many people believe that you need a large sum of money to buy a portfolio, but nothing is further from the truth. Actually with just 1,000, a new investor can build a diversified IRA portfolio. There are a few online advisement companies that will help you invest the money and not charge anything until you reach $10,000.
For those who feel a little more adventurous, lean into the risky market place. Investing a small amount of money in an area that has been beaten up could prove profitable. Funds that hold small “value” companies are down 7.7% over last year. This allows for an investor to earn a nice return on little investment.
Another way to earn a bit on your dollar is to pick one company to invest in, although it may be hard to find the right one. Companies such as Google, CVS and other brand names that are making strategic changes could offer an investor a profit later down the road.
John Labunski works closely with investors to help them make smart choices. Over the years he has seen how many investment companies care more about their bottom line than the circumstances of their investors. He also has a radio show called Retirement Wealth Talk Radio and Wealth 911. Through his show he has helped many people with their investment portfolios.