Retirement Planning: Resources to prepare you for dream retirement

But it might help to remember why retirement planning is so important. It may help provide you:

• Financial security: You’ll want enough money to cover your basic expenses and other costs (like travel!).
• Peace of mind: Knowing that you’re financially prepared can help you enjoy your retirement fully.
• Flexibility: Whether you hope to travel or spend time with loved ones, a plan can help you get there.

When to start saving

Saving early and often gives your money time to grow
Ideally, you’ll begin putting away money in your 20s or as soon as you start working. Saving early and often gives your money more time to grow—taking advantage of the power of compound interest. It’s like a magical force that works behind the scenes, multiplying your money over time.

Here’s how compound interest works:

• Save money: When you put your money in a savings account or invest it, you earn a little bit of extra money called dividends.
• Earn money: When you keep saving, you earn more money not only for the amount you first put in but also for the extra money you earned over time. It’s like getting a bonus on top of your savings!
• Watch it grow: This keeps happening over and over, and your money grows bigger and bigger. It’s like a snowball effect, resulting in exponential growth over time.
  
  

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How to start

Our free retirement planning guide can help you take it one step at a time

• Imagine your dream retirement: Knowing how you want to spend your retirement—and the costs associated with that lifestyle—will help shape your budget.
• Estimate your retirement needs: A good rule of thumb is that you’ll need about 70-80% of your pre-retirement income. But your lifestyle, health and location will affect your amount. A financial advisor can help you with this.
• Know what other income you'll have: This can help you estimate how much money you’ll need to save: Will you have a pension? What about rental income? Will you work part-time? What will Social Security cover? (This Social Security calculator estimates your monthly benefits.) When will you claim Social Security? (Here’s what to consider as you decide when to claim your benefits.)
• Set retirement savings goals: Once you know how much money you’ll need, a financial advisor can help you set realistic monthly savings goals.
• Choose the right savings accounts: You might be able to save with multiple accounts, like an Individual Retirement Account* or an employer’s 401(k) retirement plan. Dupaco’s Launchpad savings account can also help you start saving.
  * Contact your tax advisor to verify eligibility and contribution limits for IRAs.
• Know your risk tolerance: You’ll want to choose investments that match your risk tolerance and time horizon. Are you willing to take on risk, or does the idea of volatility make your stomach turn?
• Review your plan regularly: Your financial situation and retirement goals may change over time, so regularly reviewing your progress with a financial advisor is important

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Prepare for retirement

As you get closer to retirement, you'll want to prepare for your new lifestyle.
Some expenses can catch retirees off guard.

Here are some steps to help you get started:

• Think about where you'll live: Will you downsize your home? If so, now’s a good time to start thinking about when and how you’ll do it. Will you have a home loan during retirement? Even if you won’t, some homeownership costs like property taxes and homeowner’s insurance are inevitable.
• Consider vehicle costs: How often do you replace your vehicle? Will you continue that trend in retirement? Chances are, you’ll need a new vehicle at some point. It’s also important to consider ongoing maintenance and insurance costs.
• Plan for health care: Healthcare costs can be eye-opening. Especially in retirement. While Medicare can reduce your expenses dramatically, you might still encounter costs that aren’t covered. Consider the cost of a Medicare Supplement and Prescription Drug plan appropriate for you.
• Consider your spending money: The saying goes, “If you aren’t making money, you’re spending money.” And it applies to retirement. It’s not uncommon for spending on travel and gifts to increase for new retirees. Include room in your budget for spending money.
• Create a budget: Working with a financial expert to create a realistic budget for your retirement years is important. You’ll want to make sure your new income covers your new lifestyle. A free Dupaco Money Makeover can help you with this process.
• Learn from other retirees: Don’t just take it from us. Check out the retirement advice from a recent retiree here. (Spoiler: He worked with a financial advisor to help him retire debt-free so he could enjoy his next adventure!)
  

Explore Retirement Calculators here