Marietta Area Chamber of Commerce

Page 6 Marie a Area Chamber of Commerce Sponsored Advertisement Hall Financial Advisors, LLC 1101 Rosemar Road, Suite A, Parkersburg, WV 26105 416 Hart Street, Suite A, Marietta, OH 45750 TOLL-FREE: (866) 865-4442 Retirement planning can be challeng- ing, but creating a timeline can help ensure your savings stay on track. Here are some expert tips for helping to ensure your retirement plans are on schedule at every stage. Set an income goal—and know that it could change. For younger workers, it can be difficult to determine how much income will be needed in retire- ment and how much their income will increase over their lifetime. Many people start out looking at an income replacement ratio of around 80%. That said, when you're younger, 80% of your income is not going to be close to 80% of your income at retirement. That will change over time. It's important to set goals early in your retirement planning process. But be prepared to revisit them frequently as you get closer to retirement—and work with your financial advisor to make your goals as realistic as possi- ble. Plan to increase your savings rate. If you're 20 years old, a savings goal of 10% of your current salary per year is a good start. By age 30 you should be putting away at least 15% per year. If you have access to a qualified em- ployer-sponsored retirement plan (QRP), such as a 401(k) or 403(b), start there. If your employer offers matching contributions, consider con- tributing at least as much as the match. This is free money you don't want to pass up, and it can help you get to the right percentage. At the same time, consider a Roth IRA or, if available, the designated Roth account option in your 401(k) for their potential tax-free distribu- tions. Your savings rate should increase as you age; at the same time, you should explore additional investment options so you're getting the most benefit now and when you're in retirement. Sketch out how long you could be in retirement. When creating a retire- ment timeline, one of the most diffi- cult factors is estimating how long you can expect to be in through college, once they become independent, it might be tempting to reallocate that money to exotic trav- el or home renovations—but it's your retirement fund that should get the first deposit. No matter when you start, planning a retirement timeline is effective only if you budget for saving—and stick with that budget. Your finan- cial advisor can help guide this con- versation. A final tip for those in their 60s: You may want to withdraw money earlier than you think. If the bulk of your money is in qualified retire- ment plans or IRAs, most of the money you'll receive in retirement is taxable—you can even bump yourself into a higher tax bracket. At age 70½, retired minimum distri- butions (RMDs) kick in, so if you're retired at age 62, for example, take some money out then—this will lessen the impact of larger distribu- tions later on. retirement. We suggest planning for 20 to 30 years but strongly recom- mend a contingency plan in case something forces you into an unex- pected early retirement, such as health problems, perhaps, or an un- foreseen layoff. One way of thinking that can help you get there: Plan to retire at age 55. This will allow you to be prepared for unanticipated events, and any money you make by working past that age will be a bonus. Set the steps to reach your goals. If you've gotten a late start on retire- ment planning, or if you're rethinking your timeline around a plan to retire at age 55, there are effective actions you can take now to help pursue your goals. Keeping a budget is essential. As part of that budgeting, be sure to look at your discretionary spending. If you've been supporting children How to Plan a Retirement Timeline Members of the Advisory Team Ashley Ullman, Rob Blasczyk, Brett Bronski, Rob Beardmore, Chris Hall, Manag- ing Principal, Jeremiah Kuhn and Kevin Knab. This advertisement was written by Wells Fargo Advisors Financial Network and provided to you by Chris Hall, Managing Principal. Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK- GUARANTEED/MAY LOSE VALUE Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC, Member SIPC, a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. © 2018 Wells Fargo Advisors Financial Network, LLC. All rights reserved. CAR-0218-01932

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