So You Want to Retire in 2030?
2020 has felt like an endless year, but Christmas-themed displays in the supermarket are a sure sign that 2021 is just around the corner. Even if the only times you have left the house in the past eight months have been to go to senior hours at Publix, the time to think about the future is on the horizon. If being able to retire is a question of when and not if, then you are already in a good position. When you plan for retirement at least a decade in advance, you can set realistic goals and make choices that will enable you to have a comfortable retirement. Katie Brockman of the Motley Fool has some suggestions about what to do in the last decade of your career to ensure retirement prosperity. A Central Florida estate planning lawyer can help you make wise choices that will enable you to be financially secure in your golden years.
Stock Market Investing for Seniors
Investing in the stock market can be a great way to grow your retirement savings, but stock market investing, by nature, carries some risk. When you are young, you have some wiggle room to make risky investments; if you lose money on your investments, you can recover that income by continuing to work. The older you get, the safer your investments should be. You should not invest all your money in the stock market, instead choosing safer investments like savings accounts and CDs. The stock market investments you do make as you approach retirement should be less risky than the stocks you invested in when you were younger.
According to Brockman, to figure out what percent of your investments it is safe to put into the stock market, you should subtract your age from 110. For example, if you are 62 years old, it is safe to invest 38 percent of your investment portfolio in the stock market. An exception to this rule is if your non-stock market investments are especially lucrative or if you have some other reliable source of retirement income. For example, if you own a rental property or a substantial ownership interest in a successful business, and this venture generates enough money to pay most of your annual expenses after you retire, you have more flexibility to have fun with the stock market.
Be Realistic About How Much Retirement Income You Need
You often hear that you should save enough money to support yourself until age 100, but how much money will your nonagenarian self need? According to Brockman, your total retirement savings should be at least eight times the gross income you earned in the most lucrative year of your career. Therefore, if you earned $100,000 before taxes at the peak of your career, you should save $800,000 for retirement.
Contact an Attorney Today for Help
An experienced Clearwater estate planning lawyer can help you think of your future in terms of illuminating mathematical formulas and practical questions about how much is enough. Contact William Rambaum for help today.