Wednesday, November 21, 2012

Retirement Planning Guidelines for Every Age?Christine's Weekly ...

Happy Holiday Monday. We have a new assistant in our office, Taylor! Adrianna, Dave?s assistant, left the firm after working with Cava & Faulkner for 8 years. We are sad to see Adrianna go but wish her well. Adrianna moves on to bigger and better things, now that she obtained her B.A. Taylor comes to us as a paralegal student and we are excited to have her on our team!

I wish I had taken the advice of a financial planner who told me when I was 19 to begin contributing to an IRA. Had I done so, I would have soooooooooooooo much more in my retirement account now. We have employed our son Daniel in our firm so that we may begin a ROTH IRA for him. We will do the same with Cameron. Retirement planning is different for every age group, with the younger generation having more time and risk tolerance (generally) to weather greater swings in the market. However, it is NEVER too late to begin contributing and you will find a few general guidelines for investing in your retirement depending on your age bracket.

Enjoy your time this week with your loved ones, and take some time for yourself. You deserve it. Happy Thanksgiving.

Christine

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by Christine Faulkner, Esq.?

You?re never too young or too old to save for retirement; here are some guidelines by age group:

Under 25: If you graduated from college with debt, you are certainly not alone ? the average debt burden is currently $26,500 for 65 percent of college graduates. Once you are able to get a good job, you should enroll in your employer?s 401(k) or other retirement savings plan and contribute enough to qualify for your employer?s match ? usually six percent of salary.

25-40: You need to be putting away about 10 percent of your income towards retirement, and that should come before you save for a house or the kids? college fund.

40-54: You are in your prime earning years and should be able to contribute 15 percent or more to your retirement savings.

55-70: Retirement is within sight now, so you may need to start adjusting your asset allocation to risk. The closer you are to retirement, the less risk you should be taking. You should also look into long-term care insurance to protect retirement assets.

Over 70: Your withdrawal rate should generally be no more than four percent of your total portfolio value, not including an emergency reserve fund, to supplement your income from Social Security or pension. Once you are over 70 ?, you must take the Required Minimum Distribution (RMD) from your traditional IRA and 401(k) every year, which is calculated based on your life expectancy according to IRS Publication 590.

If you?d like to learn more about retirement planning, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I?ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.

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Source: http://cavafaulkner.com/elk-grove-estate-planning-blog/?p=104

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