For a smooth ride to retirement, take these financial steps when you have 10 years, five years and one year to go.
10 YEARS AWAY
Envision retirement. Now that you’re only a decade away from retirement, it’s time to start getting specific about what that will mean for you. For instance, will you travel, volunteer or work part-time? Will you move out of state, or will you stay in the same town but downsize to a smaller place?
This exercise might even help you reach your retirement financial goals quicker. A recent survey by investment manager Capital Group found that workers who first envisioned retirement were motivated to save nearly one-third more than they might otherwise (see “Ahead,” Jan.).
If you’re married, make sure the two of you compare notes about retirement. “Get on the same page with your spouse,” says Judith Ward, senior financial planner with T. Rowe Price, adding that her husband had pictured retiring on a lake in Canada, but she had had something warmer in mind. “A lot of times spouses have a different vision for retirement.”
The timing of retirement can also be an area of disagreement, particularly if one spouse is much older than the other. The older spouse might assume that both of you will retire at the same time, while the younger one may not be ready to give up a career that’s at its peak. For some couples, the solution is for the older spouse to retire from a full-time job and work part-time until the second spouse is ready to retire.
Run the numbers. To maintain your lifestyle in retirement, your income from Social Security, investments, pensions and annuities will need to replace about 75% to 80% of your current gross income. (That’s roughly what many live on now after 401(k) contributions and payroll taxes are deducted from their paychecks.)
この記事は Kiplinger's Personal Finance の February 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Kiplinger's Personal Finance の February 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
My Top 30 Index: An Update
A year ago, I put together what I called \"my own reinvention\" of the Dow Jones industrial average, the popular 142-year-old large-cap index.
Balance Your Risk and Reward
These new ETFs let you cut stock market losses. But you'll sacrifice some gains.
IS A HYBRID CAR RIGHT FOR YOU?
Hybrids offer a fuel-saving option for drivers who have reservations about all-electric vehicles. But there are trade-offs.
HOW TO REACH YOUR INVESTING GOALS
Patience helped these four investors make their portfolios work for them.
WHERE TO INVEST NOW
Expect a lot of midyear churn, with a rally toward the end of 2024.
TIPS FOR FINANCING A HOME PROJECT
I recently had a call with a client who was looking to fund the construction of a swimming pool at his house.
MORE WOMEN THAN EVER ARE STARTING BUSINESSES
Retail and travel businesses, along with health, beauty and fitness, are popular with women entrepreneurs.
Finding Home Health Care
It’s important to hire a caregiver you trust.
UNDERSTANDING BOND FUND YIELDS
What's a 30-day SEC yield? A trailing 12-month yield? A yield to maturity? We explain what each measure says about an income fund.
ANSWERS TO YOUR QUESTIONS ON STUDENT LOANS
If you have federal student loans, you may benefit from new government policies. Here's what you need to know.