Retirement Planning: Decade by Decade

Posted: Tuesday, August 21st, 2012

If you remember when the Beatles’ song, “When I’m Sixty-Four,” was first a hit, then retirement planning should have been high on your list of priorities for some time.  If you remember the song only as an “oldie,” you are in luck because you have time to make a retirement plan. No matter your age, once you begin working, keeping retirement “on the radar” is important to reaching your goals.

Retirement planning is an ongoing process – it is not a “once and done” issue.  Putting together a plan to ensure you will reach your goals and not outlive your money is important work.

Here are decade-by-decade objectives to consider.

  • Your 20s. You may feel broke, especially if you have college loans, but saving for retirement now will allow time to work for you.
  • Your 30s.  You may have gotten married and have children, and the pressures to save for retirement are competing with many other demands. Don’t let them distract you, even if you decide to stop out of working.
  • Your 40s.  Most people hit their peak earning about now.  College may be looming, but don’t sacrifice saving for retirement to save for college for your children.  College can be financed, but your retirement cannot.
  • Your 50s.  You are into the home stretch. Hopefully by this point you have saved regularly and invested prudently.  Carefully rebalance your portfolio, and if you have fallen behind in your savings goals, work aggressively to catch up.  Some people in this age range have paid off their homes.  Use that cash to get ahead.
  • Your 60s.  For many people, you are almost at the finish line.  Now is the time to take a reality check.  When can you afford to stop working?  Are you psychologically ready to retire?  At what age do you want to start drawing Social Security?

The most important step is to put together a plan – then change it as your circumstances dictate.  But, without a plan, you are leaving your retirement up to chance.  Take a careful approach for your retirement, and you will see tremendous results.

Kathy Armstrong is a CERTIFIED FINANCIAL PLANNERTM professional and works with Heritage Financial Consultants in Hunt Valley.  She is an investment advisor representative through Lincoln Financial Advisors Corp, a registered investment advisor and broker-dealer, member SIPC, 307 International Circle, Suite 390, Hunt Valley, MD  21030, 410-771-5655. Neither Heritage Financial Consultants nor Lincoln Financial Advisors is affiliated with Howard Bank.   CRN 201112-2061908

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