Retirement Planning

Are You Ready for Retirement?

• Half of American adults between the ages of 18 and 34 are not saving for retirement, and only 58 percent of 35- to 44-year-olds have retirement savings.

• In 2019, only 56 percent of workers were enrolled in their workplace’s retirement plan.

• The S&P 500’s inflation-adjusted average return over select 30-year periods is between 5 and 8 percent. That means the longer you wait to get started, the more money you have to invest to reach your retirement goal.

In a time when so much is out of our control, it is more important than ever to focus on those things in our lives that we can influence. One of the biggest is planning for our retirement.

However, as with most things in life, the hardest part of retirement planning is knowing how to get started and how to stay motivated to keep with it when the going gets tough.

Drawing on our years of experience helping countless people just like you, we wanted to compile a one-stop resource with everything you need to start (or to accelerate) your own retirement planning.

What Is Retirement Design?

You may have a 401(k) or 403(b) plan from your employer that you contribute to, a pension from one in the past, and maybe even an annuity. You likely also put a portion of your money away each month into an individual retirement account (IRA) and have a few ideas of what you want your future to look like.

Though that is certainly a good start, making all of those parts and pieces work together in one strategy that directly links to your specific, measurable retirement goals is what retirement design is all about.

Of course, this all sounds easy on paper—but how do you start to shape a cohesive retirement plan that keeps you motivated and puts you on the right path toward enjoying the moments that matter well into your golden years?

This process can take many forms, but the team at Harvest Wealth Group has found that there are three key steps:

1. Identifying your personal and financial goals and the specific savings and investments actions you need to take to achieve them
2. Understanding the current health of your savings and what your overall financial picture looks like
3. Looking at retirement planning as a continuous, evolving process that changes as your interests, goals, and savings capacity changes

Fortunately, you don’t have to move through these steps on your own; with the right team around you—made up of your family, friends, and trusted professionals—you can turn what could be a tedious process into one that makes you excited for the future.

When Should You Start Planning for Your Retirement?

Whether you’re reading this in your 20s, your 30s, or just a few years away from your retirement, when you realize that you are not quite where you want to be financially, the most important thing to remember is that it is never too late to get started with your own retirement planning.

However, the earlier you develop a retirement plan and start working toward it, the better. This is not only because of the benefit of compound interest but also because having more time on your side gives you more of an ability to withstand the ups and down of the market. Finally, starting early gives you more options to change your retirement plan and goals as you go along, giving you the flexibility to dial your savings up and down as different life events come along.

But what about those who are getting a late start on their retirement planning?

First and foremost, it is important to realize that, though you may not be able to achieve all of your financial goals, you can still put together a realistic and multi-faceted retirement plan. 

For example, you can factor in elements such as:

• Your Social Security benefits
• Your ability to work part- or full-time past the designated retirement age
• Opportunities to take advantage of “catch up” contributions from your employer-sponsored retirement or IRA plans
• Strategies customized to your particular financial situation by a trusted personal financial planner

Why Is Retirement Planning Important?

If you are worried about your money and your future retirement, you are not alone. In fact, according to the American Psychological Association’s 2020 Stress in America™ study, nearly two in three Americans said money was a significant stressor.

Although this is reason enough to put pen to paper and get started developing your own retirement plan, below are some other reasons that could motivate you to get started.

• You want to limit your potential tax liability. Depending on your tax situation, taking advantage of employer-sponsored retirement plans or qualifying IRAs can lower your tax liability today while accelerating your tax-free retirement income later.
• You want to be there for your family and community. Your spending may go down during retirement, but if charity work or charitable giving to your community is an important part of your life, planning now for what you want that to look like gives you the financial flexibility to keep it going.
• You want to prepare for the unknown. Though it is fine to be optimistic about your financial future, a positive mindset isn’t enough to bank on. Starting early means you can better weather financial hardships if your contributions need to decrease for a period of time.
• You want to stretch your savings longer. You work hard over the course of your career, and you deserve to enjoy the next phase of life however you want. Starting to plan now can help you ensure you have the funds you need to live comfortably long into your retirement.
• You know relying on Social Security alone is risky. Social Security and Medicare are designed to supplement your retirement savings and not stand on their own. Relying solely on these programs, each of which requires legislative action to see yearly increases, could leave you falling short if you need extra forms of care or finally want to begin working on your bucket list.

How Can We Help Create Your Retirement Plan?

Though we can all agree on the benefits of retirement planning, each individual’s savings journey is going to be different. You have your own unique vision for your future, your giving, and how you want to spend your time with those you love.

At Harvest Wealth Group, our mission is to not only help you capture your personal and financial goals but also give you the tools you need to make those dreams come true.

Sound too good to be true? Here is just a taste of how our team at Harvest Wealth Group approaches our commitment to our clients:

• We take the time to get to know you, your family, and your values, because we know that true wealth is more than just the size of your bank account.
• We work to identify all the options and resources available to you, including how best to leverage employer-sponsored plans, self-employed retirement plans, and other government resources.
• Our team members have the experience and tools to help you avoid common mistakes some can make on their personal financial journey.
• We help evaluate your current retirement savings and allocations to better align with your goals and risk tolerance.
• We truly want you to succeed, working closely with you in the short term and over the long run to establish a plan that keeps you motivated.

What Are Some Other Retirement Planning Resources?

We know that when it comes to your retirement planning, you have plenty of options to choose from—and that all of these choices and variables can make it hard to know where to get started.

That’s why it is important to remember that you don’t have to navigate these challenges alone. It’s always a good idea to lean on your family and friends to help you identify your goals and what matters to you. Additionally, there are plenty of helpful resources to access, and you can even enlist a professional team to work with you and cheer you on. 

 

Ready to get started? Here are some key next steps:

• Meet with your employer’s HR or benefits professionals to learn more about your employer’s retirement plan options.

• Get your hands on personal financial planning resources relevant to your situation, such as “4 Wise Ways to Maximize Your Social Security Benefits,” What Should I Do with My Old 401(k) or Employee Plan?, and Creating a Personal Financial Plan to Help You Reach Your Money and Life Goals.

• Schedule a personal consultation with the team at Harvest Wealth Group.