If someone were to ask you today if you had done any retirement planning, what would you say? You would probably say that you had thought about it or you were saving a little from your salary in your 401(k) but you haven’t done any real planning. You wouldn’t be in the minority with this answer because a Transamerica survey showed that out of over 4,000 workers only 59% said they were confident they could retire comfortably and the majority of them were saving about 8% of their salary, far below what most people would need to retire comfortably. A retirement planner can help you navigate complicated issues and Richmond can offer plenty of resources.
Estate planning, health care costs, long-term care options, and income after you retire are only a few of the topics that the Certified Financial Planner Board of Standards says you should consider as you start to plan your retirement.
Probably at the top of your list will be your income after you retire because this is what is going to help support your daily needs. Many seniors rely on their Social Security benefits and start collecting them at the age of 66. This is fine but you might want to consider delaying your benefits because you could get more money in the long run. At age 66 you will get 100% of your monthly benefits, but wait just one year and you could get 108% and wait even longer, at the most until 70, and you could get 132% of your monthly benefits.
You should also take into consideration the way you use your various accounts, like savings or a retirement fund. Believe it or not, but the order in which you withdraw money from these accounts could affect your tax rate and save you more money. Hiring a retirement planner to help you decide which money to use and when is a smart way to protect your nest egg.
The age you retire is another factor you should consider and will depend on your needs and situation. You might be better off retiring at 65 or it could be beneficial to wait a few years. It might even be better to keep working part-time, which isn’t uncommon. Here in Virginia, 5.3% of the workforce is 65 and older.
Once you’re ready to hire a Certified Financial Planner or CFP, you can ask your coworkers and friends if they have any suggestions. It might also be a good idea to talk to your employer and see if they offer any consultations or deals with local groups. Richmond has quite a few CFP and you can find them with a few of these tools.
The Certified Financial Planner Board of Standards offers a search tool that lets you look for CFP in your area. Further refine your search to retirement planners once you enter your location.
The BBB of Central Virginia allows you to search for local businesses and they also offer user reviews and business reports so you can see how each group compares to the other.
The National Association of Financial Planners is another good website to use and you can look for any type of financial planner, including retirement, within a certain distance of your town.
The Richmond Retirement System has some great resources for anyone who is looking to start their planning. You can find links to local resources, government resources, and national resources. They have planning for city workers as well as any other retiree and you can also find important forms and documents on the site. You can call the office at 806-646-5958 if you have more questions.
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