Retirement planning for each stage of your life


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Retirement planning strategies for every stage of your life. Start in your 20s.

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Retirement planning for each stage of your life

  1. 1. Lifecycle PlanningRetirement planning strategies for every stage of your life
  2. 2. Retirement Planning• Retirement planning is not an isolated, one- time event• Saving and investing strategies should be adapted to reflect changing goals and circumstances as individuals move throughout their life.
  3. 3. Retirement Planning Strategies For Your 20s• Make retirement planning a priority• I’ve got plenty of time until retirement, and I don’t have much disposable income right now, so I’ll set up a retirement savings plan in a few years,” is the mindset of many 20-somethings
  4. 4. Retirement Planning Strategies For Your 20s • An IRA started at age 22 that accumulates $5000 by age 25 with no further investment will yield $54,787 at age 65. (6% interest rate compounded) • An IRA started at age 32 that accumulates $5000 by age 35, will yield only $30,113 at age 65. (with the same criteria as the first example)
  5. 5. The Rule of 72Money approximatelydoubles in the number ofyears equal to 72 divided bythe return generated.So if you earn 6 percent ayear on your savings, yourmoney would double inabout 12 years (72 / 6 = 12).Each decade that is delayedin saving for retirement couldcost you the opportunity todouble your money.
  6. 6. Retirement Planning Strategies For Your 30s The 30s often represent a time of greater earning potential. Individuals start to advance in their careers and move up the corporate ladder.
  7. 7. 30sHowever, they may alsohave started a familyand assumed morefinancial responsibilities:a mortgage, lifeinsurance, multiple carpayments, and all of theexpenses involved inraising children.
  8. 8. 30s • Set financial priorities • Maintain consistency in making retirement plan contributions • Increase the contributions as income rises
  9. 9. 30s• Eventually, you may reach the annual contribution limits allowed by law for qualified retirement plans like IRAs and employer- sponsored 401(k) plans.• In this instance, you may want to consider alternate retirement planning vehicles that feature higher contribution limits (or no limits at all)
  10. 10. Retirement Planning Strategies For Your 40s Income may be greater Financial responsibilities may also be greater • children’s college education • helping care for aging parents
  11. 11. 40sKeep your eye on thegoalDon’t push retirementto the back of the lineLook into Roth IRAs
  12. 12. The 50s: Approaching the Finish LineThe 50s often representthe peak earning yearsOpportunity for one lastpush to save as muchmoney as possible beforeretiringShift the asset allocationmix to help preserve theassets in a retirement plan
  13. 13. Retirement Planning Strategies For Your 60s Manage your savings and investments in a way that will help protect, rather than grow, your income and principal Begin planning your retirement budget Plan for future cost of health care Factor in the effects of inflation
  14. 14. Retirement Planning Strategies For Your 70s Budgeting and Portfolio Distribution Balance your monthly budget needs with your long-term future requirements Consider whether to take a set amount each month or a percentage of balance
  15. 15. 70sWorking in retirementTimes have changedMany older Americansare continuing to work
  16. 16. This material is provided for information purposes onlyand is not intended to be used in connection with theevaluation of any investments offered by David LernerAssociates, Inc. (DLA).This material does not constitute an offer orrecommendation to buy or sell securities and should notbe considering in connection with the purchase or sale ofsecurities.