As we transition from warm summer weather into crisp fall days, it’s a good time to think about the future. Retirement planning is such an important part of your future, and it starts with thinking about your retirement goals. And not just your goals, but how long you have to meet them, how important each one is, and the likelihood that you can make it all happen. There are so many things to think about. What expenses will you have in retirement? What other income will you have? What about estate planning?

First, it’s important to understand your time horizon. We all know, the younger you are, the better off you’ll likely be. Your risk with investments can be a little higher, because you have time to ride out volatility in the market. Not only that, you have more time – and money – to invest if you start early. Start planning as soon as possible so you can take advantage of the power of compounding. And remember, retirement plans evolve over the years, which means you’ll be rebalancing portfolios and making new investment choices along the way. As mentioned before, don’t forget about compounding. Although your returns may be small at first, keep in mind, those returns continue to grow, and earn. It's like starting with a small snowball at the top of a steep hill. As it rolls down it will continue to become a much bigger snowball!

It’s also important to look at what you’ll be spending during your years in retirement. Many statistics estimate most people believe they will need to replace about 70-80% of their income. With cost of living increases, like inflation and healthcare, along with people living longer than ever before, that percentage may be low. Investing in your retirement and being able to thrive during that time means you’ll probably want to continue spending about what you do now. That means you should aim to replace nearly ALL your income!

There are so many variables to consider, and your options to put money away can be confusing and overwhelming. You have pre-tax and after tax options, individual, and employer sponsored retirement plan types. Our Wealth Management team can help you navigate and plan by assessing your risk tolerance and time horizon, as well as helping you find the best option to meet your needs.

We have the tools and expertise to guide you toward your retirement goals. Give us a call at 641-422-1600 or email us at wealth@myfcb.bank and get started along your retirement path today!