Revive your retirement savings
Published 10:22 am Wednesday, September 23, 2020
If you’re concerned your retirement savings aren’t quite where they should be, you have plenty of company – about 30% of working Americans feel the same. But while boosting savings is the most important factor in ensuring a comfortable retirement, there are other changes you can make without straying from your financial plan.
1. Look at expenses – Depending on your anticipated shortfall, this might mean anything from trimming daily expenses to really slashing them (e.g., delaying a new car purchase).
2. Eliminate credit card debt – Pay down high-interest debt as rapidly as possible, and construct a new household budget that makes retirement savings your top priority.
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3. Save as much as possible – Try putting away at least 15% of your income, or setting a specific savings goal and getting there as quickly as possible.
4. Retire later – The more time your investments have to grow, the bigger the ultimate payoff can be. Even a couple more years can make a big difference in how much you can put aside.
5. Revisit your asset allocation – You may have to allocate more of your investments to equities if you’re behind. Historically, these have provided better long-term returns than bonds. Just be careful not to exceed your risk tolerance.
6. Maximize Social Security benefits – Waiting as long as pos¬sible to begin taking benefits makes sense for many, but Social Security is complicated. Fortunately, your advisor can guide you through different claiming strategies.
7. Retire part time – If you or your spouse or partner can work part time, you’ll boost your retirement cash flow and give yourself more time for savings to grow.
8. Retire simpler – Many retirees find that living more simply is just fine. You’ll want to strike a balance here – don’t give up on your dreams, but try to make them a little more realistic.
9. Rethink your home equity – Consider deploying your home equity to establish an emergency fund or to meet other essential expenses.
10. Downsize for simplicity – If you have more home than you need, consider downsizing and investing whatever you clear in an income-oriented account.
11. Maximize tax breaks – Once you’re 50, the amount you can contribute tax-free to retirement accounts increases. So if you have a workplace retirement plan with an employer matching program, try making the maximum allowable contribution. Also think about prior jobs – did you leave anything behind in a retirement plan?
To begin boosting your savings:
• Discuss everything with your advisor, including how much you think you’ll need for the retirement you envision. He or she can help you determine what you need to get there, how to invest your money, how to account for inflation and what to set aside for your potential healthcare costs.
• Ask your advisor to run the appropriate what-if scenarios. You may find your situation is brighter than you think.
Material created by Raymond James for use by its advisors. The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James is not affiliated with any other entity listed herein. © 2020 Raymond James Financial Services, Inc., member FINRA/SIPC. Securities offered through Raymond James Financial Services Advisors, Inc. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. 20-BDMKT-4424 KL/EG 6/20
Stephen P. Poitevint, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc.
Stephen “Phillip” Poitevint, Certified Financial Planner, is located at 908 Tallahassee Highway, Bainbridge, Georgia and can be contacted at (229) 246-7208 and 67A Town Center Drive, Huntsville, Alabama and can be contacted at (256) 203-8000 or www.raymondjames.com/poitevintfinancial/