6 Retirement Planning Strategies to Keep in Mind

Financial Tips & Advice to Help You Prepare For Retirement

Retirement is a huge milestone in life, and since it is only done once (most of the time), you’re going to want to make sure you do it the right way. There are a lot of moving parts that go into retirement, and it can definitely be overwhelming at times. You will want to be able to maintain the same lifestyle you had before retirement, so here are a few helpful tips and strategies to follow so that you can enjoy retirement.

Save, Save, Save

While this might be obvious, a lot of people do not end up saving enough money for retirement. It is recommended that individuals who wish to retire comfortably save 15% of their annual income or more. Now, this is mainly if you start saving at age 30 and plan to retire in your 60s. If you have gotten a later start, it’s recommended that you save more than 15% of your income.

Consider what age you are now and when you plan to retire, someone who is 45 years old will want to put away at least 25% of their annual income in order to live comfortably during retirement. Someone in their 20’s would be okay saving 10% of their income, as they have a lot more time to save for retirement.

Long Term Investments

If you have a bit more time, long-term investments are going to be helpful. According to Bank Rate, long-term investments can include growth stocks like Amazon, ETF’s and mutual funds, and dividend stocks offer a higher return in the long run. What are ETFs, mutual funds, and dividends?

ETF’s - An exchange-traded fund is a type of security that tracks an index but can be bought or sold on a stock exchange.

Mutual Funds - Mutual funds gather investors’ cash and invest it into stocks and bonds to generate returns.

Dividends - A dividend is a distribution of cash or stock to a group of shareholders in a company.

The key is having a diversified portfolio, as they are likely to do better no matter what your risk tolerance is.

Short Term Investments

If you are older and won’t benefit from long-term investments, try investing in short-term stocks. If you have 2-3 years until retirement, think about short-term bond funds and money-market mutual funds. These investments are moderate risk and reward, and bonds are typically safer than stocks for short-term investments.

Money-market mutual funds offer higher-yield savings in the short term and are mutual funds that produce high-quality debt from the government, municipalities, or corporations. They are not FDIC insured and can involve some risk similar to short-term bonds.
Determine Your Risk Tolerance

Now it’s time to figure out how much risk you are willing to take to meet your financial goals. Age and risk tolerance go hand in hand, younger individuals will probably tend to be riskier, and older people will tend to be less risky since there isn’t as much time to bounce back if the market declines. Income and comfort level also come into play, as well as what your personal financial goals are. Ask yourself questions like this:

● What am I saving for during retirement?
● When do I expect to begin withdrawing money?

As you become closer to retirement, you may want to get a little more conservative with your investments. Maintain what you already have and don’t risk losing too much during a time when you will need it.

Retirement Spending Needs

Determine realistically how you will spend your money during retirement. Consider mortgage payments, medical bills, car payments, and even how much money is spent on food and any other extra purchases. Think about how you lived before retirement because you will likely be living the exact same lifestyle during retirement.

Develop a list of things you already spend money on and things you will need to in the future. Planning and budgeting your finances will help you live a stress-free comfortable life in retirement.

Speak with A Retirement Planner

There is a lot that goes into retirement, and a lot of people can feel overwhelmed and anxious about retiring the right way. One of the best ways to handle retirement is to speak with a professional retirement planner.

Hiring a fee-only financial planner will help advise you to make the right decisions when it comes to retirement, as well as develop a plan for your investments, goals, cash flow, estate planning, and more. Contacting a retirement planner right before your retirement will help ensure that you are getting everything you want out of your retirement.


Planning for retirement can be stressful, which is why planning and budgeting for your future is crucial. Focus on creating a flexible portfolio that can be modified based on the constantly changing market conditions. Be realistic, flexible, and on top of your retirement plan, for a worry-free retirement.

About the author: Amanda Filippone is a copywriter for Zynergy Retirement Planning. Based in Red Bank, New Jersey, Zynergy Retirement Planning specializes in financial planning, specifically retirement planning for adults over 50 years old.


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