Fact: Most Americans don’t know whether or not they will be prepared enough to retire at age 65. According to a March 2017 study from the Center For Retirement Research at Boston College, around 52 percent of Americans who were polled indicated that they were at risk of seeing a significant drop-off in their standard of living after retirement.
Why is this happening?
Simply put, working households are simply not preparing for retirement in the right ways. Here at Tactical Wealth, we want to make sure you are doing enough for retirement, not only to be able to make a comfortable living but to also have peace of mind when the time comes.
That’s why we offer an innovative investment option known as the Fixed Income Fund, which allows investors to receive stable, consistent income monthly in retirement and beyond. But more on that later.
For now, let’s take a look at the different areas to assess to make sure that you are doing enough for retirement.
Start Saving Now
In an earlier blog, we went over the many reasons why you should start saving for retirement now.
This point is especially important if you’re still young, say in your 20’s and 30’s. That’s because the more you start saving now, whether it’s $50 or $500 a month, the more you will earn in tax-deferred savings, and you’ll also increase your likelihood of maintaining your standard of living. Explore your many retirement savings options, from an employer-sponsored 401K account to an IRA, as soon as you are making a livable wage, and you will take the first step towards a safe and happy retirement.
Know How Much You Need
There are a great many different retirement income calculators available online, which should help you determine how much income you will need in retirement. A good rule of thumb is that you should start by saving at least 10 percent of your income yearly, and increase that percentage periodically as you inch closer towards retirement (and also earn more money). Some experts indicate that you can compare your annual salary to the number value you have combined in your different savings account, and that by age 35 your savings should equal around 1.7 times your salary, and increase from there. The more you contribute, obviously, the better off you will be.
Don’t Count On Social Security Alone
In our complete retirement checklist, we noted that relying on welfare programs like Social Security alone are a formula for failure when it comes to retirement.
Not having any savings and relying solely on these type of programs are one of the biggest factors in losing that quality standard of living, which is why you should know the ins and outs of your retirement plan well before you even become of age. However, most Americans still fall well short of what they will need in retirement, and if that’s the case then you will be thankful that Social Security is there to help.
While you can start collecting at age 62, it’s much more beneficial if you can wait until 66 or 67 in order to maximize your payments and standard of living. Taking payments early can cause you to incur penalties upwards of 6.67 percent of your full amount, so be wary and plan accordingly.
Take Care Of Your Health
One thing that often gets overlooked when it comes to retirement is the need for health care. While Medicare can kick in around age 65, it often doesn’t cover all that we need as we get older. That’s why the better you can take care of yourself health-wise when you’re younger, the better off you should be when you’re older. Cutting down on health bills, and knowing the full range of your health insurance options in retirement, are also important aspects of being fully prepared. One tip: See if your employer offers health care coverage for retirees. This can help cover routine exams and other services that Medicare may not cover, or that you’d otherwise be paying for with your savings.
While making risky investments may not be a wise thing to do as you get older, it might be something that’s beneficial to you when you’re young. However, if you start out by contributing to a 401K or IRA (or both) at a young working age, the need for investments in the stock market and other securities won’t be as great.
When the time comes for you to think about retirement, however, there are some other low risk, high return investment options to consider. The most common, of course, are annuities; many of them, however, have a number of high broker management fees and low rates which can compromise your standard of living.
Not the Fixed Income Fund. Our product is a fixed annuity on steroids, meaning it generates a stable, consistent income at interest rates that are much higher than those associated with other financial annuities, bonds, and securities. Your standard of living won’t be compromised with this new way of investing, and because we have a diverse pool of investments and an established contingency reserve, you can rest assured that your money is safe and secure.
When assessing your retirement plan, be sure you know that the Fixed Income Fund is an option for you if you’re a motivated, serious, accredited investor looking for monthly dividends with no investor fees or management fees. Learn more about the Fixed Income Fund and contact us today.