Menu
rebecca.rosepino@gmail.com
September 12, 2022
Making retirement a priority is one of the smartest things you can do for your future. It may not seem like a pressing concern when you are young, but trust us – it’s never too early to start thinking about your retirement plans.
Ideally, you should start saving for retirement as early as possible. The earlier you start, the longer your money has to grow. Even if you can only afford to save a small amount each month, it will add up over time. The sooner you start thinking about retirement, the
better. This gives you more time to save and invest. It also allows you to take advantage of compound interest.
“Women are missing out on thousands of income dollars due to the gender pay gap but they could be missing out on millions of dollars due to the gender investing gap.” – Katie Williams, co-founder of The 411k.
One way to make saving for retirement a habit is to set up automatic transfers from your checking account to your retirement account. This way, you’re less likely to miss a payment. You can also have a certain percentage of your paycheck automatically
deposited into your retirement account.
How much you need to save for retirement depends on a number of factors, including your desired lifestyle and how long you expect to live in retirement. A general rule of thumb is to save at least 10-15% of your income for retirement
-Invest wisely: When you’re thinking about how to invest your retirement savings, it’s important to consider both the potential risks and rewards of each investment. You may want to speak with a financial advisor to get started.
-Save regularly: Try to make saving for retirement a habit. If you can, set up automatic transfers from your checking account to your retirement account so that you’re less likely to miss a payment.
Women should start their investment journeys today.
A retirement plan is simply a way to set aside money each month or year to be used during your retirement.There are many different types of retirement plans, such as 401(k)s, IRAs, and annuities.
One of the best ways to save for retirement is by taking advantage of tax-free incentives. By contributing to a Registered Retirement Savings Plan (RRSP), you can reduce your taxable income and grow your savings tax-free.
Invest today for a better tomorrow.
There are a few different types of retirement plans:
-401(k) plans: 401(k) plans are employer-sponsored retirement plans. They’re a great way to save for retirement because they offer tax benefits and often employer matching contributions.
-Individual retirement accounts (IRAs): IRAs are personal retirement savings accounts. There are two types of IRAs: traditional and Roth. With a traditional IRA, you get tax breaks on your contributions. With a Roth IRA, you don’t get a tax break on your contributions, but your withdrawals are tax-free.
-Pension plans: Pension plans are retirement plans offered by employers. They’re designed to provide income in retirement.
-SEP IRA: A SEP IRA is a retirement savings plan for self-employed people and small business owners.
-Defined Benefit Pension plans: Pension plans are retirement plans offered by employers. They are designed to provide income in retirement.
Don’t know where to begin? Our advisors can help you navigate your money life decisions: start here, today!
A key to success is to have a diversified portfolio. A diversified portfolio is one which includes a variety of investments, such as stocks, bonds and real estate.
This type of portfolio can help you weather market ups and downs, because not all investments will be affected by the same factors.
For example, if the stock market is down, your bond holdings may still be doing well.
Diversification is important because it helps you manage risk. Women tend to leave more than 70% of their wealth in cash as opposed to investing it. By investing in a variety of asset classes, you’re less likely to experience big losses if one investment fails.
Building and structuring your retirement investment portfolio is just as important.
Finally, regular reviews of your retirement plan are crucial to ensure that you’re on track to meet your goals. As your circumstances change over time, your retirement plan should change with you.
Regular reviews will help you make sure that your investments are still aligned with your goals.
“If you’re in your twenties and thirties now, you are the first generation that statistically speaking will likely spend more years in retirement than you did in the workforce.” – Manisha Thakor on an episode of The 411k
How much you need to save for retirement depends on a number of factors, including your desired lifestyle, when you expect to retire and how long you expect to live in retirement. A general rule of thumb is to save at least 10-15% of your income for retirement.
1. Consider using a retirement calculator. This tool can help you estimate how much money you will need to save based on your current age, salary and other factors.
2. Invest in a retirement account. There are several different types of retirement accounts available, such as 401(k) s and IRAs. Talk to your financial advisor about which option is best for you.
3. Make a savings plan. Once you know how much income you will need in retirement, you can start putting away money each month to reach your goal. To start, use this savings calculator to experiment with different savings goals.
4. Stay disciplined with your savings. It can be tempting to spend your hard-earned money, but remember that you are saving for retirement. Try to avoid unnecessary impulse purchases and stick to your budget.
5. Get a financial planner. A financial planner can help you develop a retirement savings plan that’s tailored to your unique situation. Financial planners will tailor savings plans to your unique situation. Start here, today!
6. Review your progress regularly. Checking in on your retirement savings periodically will help you stay on track and make adjustments as needed.
Saving for retirement is a daunting task. That’s why we are here to help!
The later you retire, the more time you have to build funds to support your retirement. The average age that women retire is 63 and most individual retirement accounts won’t even let you withdraw money from it before age 59.5 (the penalty is 10%).
However, there are more and more women joining the FIRE movement (“financial independence, retire early”), making work optional in their 40s or even their 30s.
Deciding when you can and want to retire are decisions within your control. However, how long you have to live off of your retirement funds is something you have less control over.
The average life-expectancy for women is 81 years old and women are known to live longer than their partners. Women need to prioritize financial planning early to have financial security later on. And the earlier you start, the more time your money has to grow.
“If you start using sunscreen in your twenties and thirties, you’re really not going to look any different than your friends. But by the time you get to [your 50s], it’s pretty clear who used sunscreen and who didn’t. And to fix the damage is expensive and painful. And so that’s the same for saving for retirement early on. You don’t see it on the surface but it makes such a difference. It gives you so much more flexibility, particularly as a woman, if you can start out fast and furious. ” – Manisha Thakor on an episode of The 411k
Compound interest is when you earn interest on your original investment, as well as on the interest that has accumulated over time.
This can help your money grow much faster than if you were just earning interest on the original investment.
According to author David Bach, $5 dollars a day earning 10% annual interest equals $1,885 after 1 year… $948,611 after 40 years! So the earlier you start the better.
Why do you need to start thinking about retirement now? Your lifestyle today can have implications on your Golden Years lifestyle. The less you live on today, the earlier you will be able to retire.
This works in two ways. If you live on less today, you can put more towards retirement investments early (giving more money more time to grow). Further, the lower the cost of your lifestyle is today, the less you will need to support the same lifestyle in retirement.
For example, if you are living a luxurious lifestyle today and you imagine an even more lavish lifestyle of travel, mansions and boats in retirement, you are going to need significantly more in retirement to support that life.
Living below your means now can lead to a more sustainable and financially secure retirement in your future.
Finally, be very aware of lifestyle creep! It is helpful not to match your spending with each of your pay increases or bonuses.
We know it is tempting, but you should try to maintain your lifestyle as much as you can as your income increases over time.
A common example of lifestyle creep is perceiving things that you would have considered luxuries when you were in a lower income bracket as “necessities” in a higher income bracket (where you live, what you drive and where you shop for groceries or clothing are common examples of categories where people tend to change their spending behaviors once they start earning more money).
Of course you want to celebrate your successes but be very mindful of how you’re doing this.
Try to take extra income and put it towards your investments…your future you will thank you!
A financial planner can help you invest for retirement by providing financial advice, investment strategies, and guidance on how to make the most of your retirement savings.
Did you know women make amazing investors? Women need to tune into their strength when it comes to their investment skills.
They can also help you manage your retirement income and expenses, and create a retirement budget.
Some things to consider when investing for retirement include:
– How much money you will need to have saved in order to retire comfortably?
– When you want to retire?
– What sources of income you will have in retirement (e.g., pension, Social Security, investments)?
– How much you can afford to save each month?
– Your risk tolerance (how much risk you are willing to take with your investments)?
If you don’t start saving for retirement now, you may end up struggling financially in retirement. This is because you will have to rely on Social Security benefits, which are often not enough to cover all of your expenses.
Additionally, you may not be able to retire when you want to if you don’t have enough saved up.
Making small tweaks to your retirement plan now can have a big impact on your future financial security.
If you’re not sure where to start, there are plenty of online resources and financial advisors who can help you create a retirement plan that fits your unique needs.
A financial planner can help you develop a personalized retirement plan that takes into account your specific financial situation and goals. They provide advice and guidance on how to make the most of your retirement savings.
In addition, a financial planner can help you manage your retirement income and expenses, and create a retirement budget.
How can a financial planner help you invest for your retirement?
Financial planners can offer a range of services to help you plan and save for retirement. They can provide financial advice, investment strategies, and guidance on how to make the most of your retirement savings.
A financial planner can also help you manage your retirement income and expenses, and create a retirement budget.
The most important thing you can do to prepare for retirement is to chat with a financial advisor. Money Her Way partnered with Christie Malmborg to provide financial services to women that help people develop a retirement savings plan that is tailored to their unique needs.
Every individual is different, which is why a financial planner can help you reach your retirement goals.
There are a few key things to keep in mind when you’re thinking about retirement planning:
-Start early: The sooner you start saving for retirement, the better. This gives your money more time to grow through compound interest.
-Invest wisely: When you’re thinking about how to invest your retirement savings, it’s important to consider both the potential risks and rewards of each investment. You may want to speak with a financial advisor to get started.
-Save regularly: Try to make saving for retirement a habit. If you can, set up automatic transfers from your checking account to your retirement account so that you’re less likely to miss a payment.
-Diversify your investments: Diversifying your investments can help reduce your risk. This means investing in a variety of different asset types, such as stocks, bonds, and real estate.
-Get a financial planner: A financial planner can help you develop a retirement plan that’s tailored to your unique goals and circumstances.
-Think long term: Retirement planning is a long-term process. Don’t get discouraged if you have a few set-backs along the way. Just stay focused on your goal and keep saving.
Saving for retirement may seem like a daunting task, but it doesn’t have to be.
By starting early and investing regularly, you can reach your retirement goals. And if you’re not sure where to start, a financial planner can help.
There are a few common retirement myths:
-You need to retire as soon as you can: This isn’t necessarily true. It depends on your personal circumstances and goals.
-You need to have a retirement plan: While a retirement plan can be helpful, it’s not required. You can save for retirement without one.
-You need to retire with a certain amount of money: There’s no set retirement savings goal. It depends on your lifestyle and how much income you’ll need in retirement.
-You can’t retire until you’re 65: You can retire whenever you want, but you may not have access to all of your retirement benefits until you reach age 65.
There are many benefits to working with a financial planner. A financial planner can help you get a clear understanding of your financial situation and what you need to do to reach your retirement goals.
They can also provide financial advice, investment strategies, and guidance on how to make the most of your retirement savings. In addition, a financial planner can help you manage your retirement income and expenses, and create a retirement budget.
For more information on retirement planning, speak with a financial advisor today.
So what are you waiting for? Start planning for your retirement today!
The 411k empowers professional women by promoting financial wellness and literacy.
If you have money or career related questions, visit the411k.com or message us on Instagram @the_411k.
Halliday Financial Disclosure:
Securities-related transactions are managed by Halliday Financial’s subsidiary, Halliday Financial, LLC., Member FINRA and SIPC. The Company only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by adviser), or product made reference to directly or indirectly via link to any unaffiliated third-party Website, will be profitable or equal to corresponding indicated performance levels. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. No client or prospective client should assume that any information presented and/or made available on this website serves as the receipt of, or a substitute for, personalized investment advice from the adviser or any other investment professional. Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results.
Not everyone is lucky enough to have financial planners as parents, but that’s what Money Her Way is here for. We want to give every woman, no matter their age, the opportunity to take control of her finances.
