COLORADO SPRINGS – For many of us, retirement may seem like a lifetime away. The reality is though, it’ll be here before we know it.
Retirement is something a lot of people start saving for too late in life. Our partner at Carlson Financial said it’s important to make our money last as long as we do. The ultimate goal being successful and stress-free golden years.
Carl Carlson said, “Save, save, save and make it automatic.”
The CEO of Carlson Financial said the time to start saving for retirement should be that first job out of college.
“I recommend saving 20 percent of your paycheck per year.”
If you can’t swing that much, make sure you’re at least saving something.
“If you’ve got a 401(k) or a 403(b), or a TSP, or something that’s going to give you a match, and if you put in up to a certain percent they’re going to match that. Do everything you can to get that match because that’s free money.”
The next thing to do is to make a plan. Carlson’s recommendation is to put together a simple one page outline that includes income, expenses, investments, and what age you’d like to turn in your badge.
“Always kind of plan a little earlier then when you actually want to retire so that if you have a few problems along the way, which often times many of us do, some surprises that happen, then you’ll still at least get pretty close.”
If you have a pension the pressure to save a ton of money isn’t as prevalent.
“If you don’t have a pension you better have more money saved and that’s when you need to start looking at those numbers up there in that million dollar or more range.”
The reality is that being able to collect Social Security could be a thing of the past for future generations.
“If you’re younger than 55, if you’re 35…don’t even count on it. Build your plan without Social Security.”
Building a solid retirement plan takes team work. Instead of doing it on your own Carlson recommends getting a financial adviser that can gear a plan just for you.
Carlson Financial is a sponsor of Financial Focus.