3 Smart Tips for Planning Retirement in Your 40’s
If you’ve been saving for retirement since your early 20’s, then you’re well on your way towards securing your future financial security. But for some approaching forty or in their 40’s, the lack of a retirement plan is an all too clear reminder that the clock is ticking and propelling you closer to retirement age. Without a retirement plan, you may find your golden years less enjoyable and more of a financial struggle. According to GoBankingRates.com, eighty percent of forty year olds are behind on their retirement savings. Thankfully, it’s never too late to plan for retirement. Here are 3 smart tips for planning for retirement in your 40’s.
1.) Put yourself first: Many potential Arizona retirees struggle with the decision of where to put their money. And with everything from paying for your daughter’s wedding to funding for your children’s college fund, it’s easy to forget how important saving for retirement is. Just remember that prioritizing funding for your retirement plan is the most important thing you can do for yourself. Family can always find alternative options to pay for their needs, but you may not have the financial resources you need for retirement.
2.) Know your numbers: Not sure how much money you need to retire comfortably? You need to know your numbers, as in what age you plan to retire by. Some experts argue that you should be shooting for eight times your ending salary; others say you should be building toward $1 million, and some even say you need closer to $2 million. Once you know the age you want to retire, then you can start building your retirement plan around that number and determining what works best for you. In addition to free retirement calculators online, there are a vast number of resources and investment professionals who can assist you with creating a retirement plan that works best for your needs.
3.) Eliminate your debts: Saving for retirement isn’t exactly easy when you’re still paying off the debts you collected in your 20’s. Everything from high-interest credit cards to student loans to unpaid medical bills are taking precious dollars that could be funding your retirement savings. If you don’t work on eliminating or lowering your debts now, you may compromise your retirement later.
If you’d like more retirement planning tips or if you’re looking for an Arizona retirement community to enjoy retired living, Contact Sharon Mason today and let me help you find the community that fits your dreams!
Your Arizona Retirement Expert,Sharon Mason, Associate BrokerRE/MAX Professionals623-810-9988www.RetireArizonaStyle.com
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Top 5 Places to Retire in Arizona
Looking to retire in 2016? You may want to consider making Arizona your retirement destination. According to the U.S. census, 15.4 percent of people living in Arizona are 65 years or older, a proportion slightly larger than the national average. It’s no surprise Arizona would be one of the top places to retire, especially since Arizona as a whole is one of the 10 most tax-friendly states for retirees, according to Kiplinger, a Washington, D.C.-based business and finance-advice publication.
Also, a survey on WallHub, a financial-planning website for consumers and small-business owners, ranked the top-50 best places to retire in the country. To develop this ranking, 150 largest cities in the U.S. were analyzed and rated based on twenty-five retirement-related concerns, including housing affordability, recreational activities offered to seniors, quality of health care and other retirement issues. Not surprisingly, sunny Arizona made the list several times.
Below are the top 5 places to retire in Arizona according to the WallHub survey:
1. Scottsdale. (ranked #5)
2. Peoria. (ranked #10)
3. Tempe. (ranked #18)
4. Mesa. (ranked #21)
5. Tucson. (ranked #24)
As the number of retirees climbs nationwide, people beginning a new stage of life are seeking out the best places in Arizona to retire. Whole communities already cater to retirees and other active adults throughout the Valley. If you’d like to learn more about retiring in Arizona or if you’re looking to buy an Arizona retirement home, please contact Sharon Mason today!
Your Arizona Retirement Expert,
Sharon Mason, Associate BrokerRE/MAX Professionals
What you need to know about bond ladders as retirement income
Whether you’re currently an Arizona retiree or looking to retire in 2016, it pays to know all your options when living on a fixed income. Most financial institutes provide a variety of options to build your retirement income from certificates of deposit (CDs) and annuities to mutual funds and more. But if you have a bit more to invest creatively, there’s a fixed income strategy that can provide you with higher yields known as laddering your bonds. Here’s what you need to know about bond ladders as retirement income.
Strategic buying: Laddering starts with buying a portfolio of bonds or CDs at staggering maturities, whether it's over several months or years. As the bonds or CDs mature, purchasers can then reinvest the proceeds into debt instruments that best fit their income needs. Cash would then be available on a regular basis over that investment period versus being locked up in a longer-term bond or CD.
Interest rate locks: A bond ladder can provide some protection against rising interest rates. If rates increase, you can purchase higher-yield bonds or CDs with the income from the debt instruments already in your ladder. Many investors decide to build a bond ladder because it can help manage the risks of changing interest rates and customize a stream of income.
Invest in help: Creating and maintaining a bond ladder does take some time and effort. Many investors may be better off having a trusted financial advisor do the ladder construction and risk management for them. Having a professional bond manager handle the fixed-income allocation takes some of the stress out of the process. For clients with limited assets, some advisors create ladders out of target-maturity Exchange Traded Funds (ETFs). You can hire a fund manager to navigate for you, but there’s a fee attached so shop smartly for the best rates.
Building a bond ladder can lead to a stable foundation of retirement income, but it is not without its risks or rewards. To learn more about utilizing bond ladders as retirement income, contact your local financial institution. And if you’re looking to put your booming retirement income towards an Arizona retirement home, contact Sharon Mason today!
Sharon Mason, Associate Broker
This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Professionals is not a financial institution and so you should contact a qualified financial institute directly to learn more about its financial products and your eligibility for such products.