 |
|
Home : Planning Your Finances : Retirement Planning
Make Your Retirement Dreams Come True
Dreams remain only dreams without a solid plan for retirement income. If you're in the early stages of retirement planning, there are some important questions and options you should consider. If you're nearing retirement or are already retired and embarking on a new career or new experiences, you want to make sure your investment plan can be sustained throughout your retirement years.
Transamerica can help you achieve many of your retirement goals. Here are some tips to help you better plan for your retirement needs.
Can You Afford to Retire?
What do You Want to Accomplish?
Planning for Retirement
The High Cost of Procrastination
Can You Afford to Retire?
Statistics from the Social Security Administration show that out of every 100 Americans...
- 51 have income above the poverty level, but must reduce their standard of living at retirement
- 25 die prior to age 65
- 20 have an annual income below the poverty level after age 65
- Only 4 achieve financial independence
Achieving financial independence takes planning!
Source: U.S. Department of Health and Human Services, SSA Pub. #13-11871
Top of Page
What do You Want to Accomplish?
While you're living...
- Tax-advantaged growth
- Liquidity for emergencies and opportunities
- Financially independent retirement
Upon your death...
- Minimal death taxes and final expenses
- Maximum estate passed to heirs
- Financially sound family and business
Top of Page
Planning for Retirement
To achieve a financially comfortable retirement:
- You need your assets to grow
- You need to build a financial nest egg
- You need to pay yourself first by diverting a regular percentage of earnings to your retirement fund
Top of Page
The High Cost of Procrastination
|
Example 1:
|
 |
Tom Smart is 30 years old and saves $2,000 per year until age 65. If he earns 6% interest, by age 65 he will have $222,870. Tom put in $70,000 over 35 years.
|
|
|
 |
Joe Waite begins saving when he is 40. Assuming he earns 6% interest, he has to save $4,062 per year in order to have the same $222,870 by age 65. Joe put in $101,550 over 25 years.
|
|
|
|
| By age 65, Tom and Joe earned the same amount, but Tom put in $31,550 less. Waiting 10 years cost Joe over $3,000 a year!
|
|
|
Example 2:
This example assumes both people earn 6% tax-deferred on their money until age 65.
|
 |
Laura Sharpe is 30. She saves $2,000 every year until age 65. Laura has $222,870 at age 65. |
|
|
 |
Kelly Slowe is 40. She saves $2,000 every year until age 65. Kelly has $109,729 at age 65. |
|
|
Because Kelly waited 10 years longer than Laura to start saving, she has $113,141 less at age 65! Can you afford the cost of waiting?
|
Note: These examples are intended to show the effect of compounding. Income taxes would affect and reduce returns.
|
A Transamerica representative can advise you on strategies to help make your retirement dreams come true.
Top of Page
|
|
|
|
