Retirement Savings

The Ballast Atheneum is a collection of our thoughts on the twelve most important topics in financial planning. Today, the focus is on Insurance.

A fundamental job of a financial planner is to assist clients with retirement savings. How much do you need to save? Which account types should you use? Given multiple options, where should you save your money first? The following articles discuss these and other questions related to retirement savings.

Are you saving enough for retirement?

As we meet with new families, we continually hear the same two questions: 1) are we making good decisions with the money we earn, and 2) are we saving enough for retirement?  These questions are typical whether a person is 35 years old or 55 years old.   Fortunately for many of the people we work with, when compared to the average, most of our clients are saving more than their peers.  However, that does not necessarily mean that they are saving enough to meet their own personal goals.

Determining a Retirement Savings Rate.

Are roth accounts for young people? Is tax deferral a good idea?

We are fortunate to have a very educated and knowledgeable client base, but we are consistently surprised by the myths and misconceptions clients and prospects bring to the conversation. This article lists the Top 7 Myths and Misconceptions About Retirement Savings; it is by no means a complete list but highlights the most common misunderstood areas in retirement planning.

Retirement Saving Myths and Misconceptions.

What could an investment become over the years?

As we discuss retirement savings, one aspect that is worthy of consideration is the weighing of alternatives.  Hindsight is always 20/20, but let’s consider the cost of a spent dollar throughout the years.  Essentially, if you had $X in a given year, what is something that you could have purchased during that year compared to what would that $X have turned into had you invested it instead.  Putting money into an investment account is not as fun as going on a Royal Caribbean cruise to Bermuda, but what if?

The Cost of a Spent Dollar.

Can you balance saving and giving?

Most of our clients aspire to be financially self-sufficient.  As those clients age, we notice some amount of transition into wanting to benefit others with accumulated resources.  This giving can range from donations to charities of interest to paying for a grandchild’s education to helping a friend in need.   We have been fortunate since the founding of our firm to work with very generous people.  In some cases, this generosity can take on a life of its own and eventually erode a person’s financial self-sufficiency.

Consider your options.

How do you decide where to put each dollar you plan to save?

With a task as important as funding your retirement, determining which accounts to fund and in what order should not be taken lightly.  Whether it’s a company plan, individual retirement account or taxable account, there are a lot of ways to save for retirement.  So how do you decide where to put each dollar you plan to save?  Of course, it depends on your circumstances, but let’s look at some general guidelines that might help with your retirement-savings decisions.

Finding the Best order for Funding Retirement.

Share the Post:

Related Commentaries

Join Our Newsletter

Sign up to receive periodical insights and tools.