Retirement planning is a must for anyone looking to ensure financial security in their later years. It can seem intimidating at first, but with a few steps, it can be easy to get started and ensure you have the resources necessary for retirement.
Retirement Planning Explained By Bill Schantz
According to Bill Schantz, planning for retirement is the process of taking action to ensure you will have enough money when you stop working. This may include saving and investing, determining how much you need to save, choosing investments, and understanding how government benefits like Social Security might fit in your plan.
How Much Should You Save?
The amount you should save depends on many factors, including your age, current income level, lifestyle goals, and more. A general rule of thumb is that most people should save 10-15% of their income each year for retirement. Additionally, the earlier you start saving, the better because this gives your investments more time to grow.
Which Investment Options Are Available?
When it comes to retirement planning, many different types of investments are available. These include stocks, bonds, mutual funds, annuities, and real estate. It’s important to understand the risks associated with each type of investment before making any decisions. Additionally, it may be beneficial to seek professional advice from a financial advisor when deciding which option is best for you.
How Can Social Security Fit Into Your Plan?
According to Bill Schantz, Social Security can play an important role in your retirement plan by providing additional income once you retire. While Social Security benefits are not designed to replace traditional retirement savings such as 401(k) or IRA accounts, they can provide supplemental income that can help cover some of your expenses during retirement.
Bill Schantz’s Tips For Retirement Planning
Bill Schantz highlights some important tips to help you get started with retirement planning and saving.
Start Early
The most important step when planning for retirement is beginning to save early on. The earlier you begin saving, the more time your money has to grow through interest and investments. Many financial advisors recommend starting as early as possible, such as within ten years of entering the job market if possible. That way, you have an entire career’s worth of savings that will help secure your later years.
Diversification
You should also think about diversifying your investments to manage risk. This means investing in various assets, such as stocks, bonds, and mutual funds. This helps to spread out the risk associated with any one type of asset.
Create A Budget
Another essential tip is creating and following a budget. Knowing how much you save each month can help you stay on track with your retirement savings goals while still allowing you to enjoy life now. Working closely with a financial advisor can also be beneficial to ensure you are staying within your means and not overspending.
Bill Schantz’s Final Thoughts
Planning for retirement does not have to be overwhelming or confusing if you follow a few simple steps. Bill Schantz believes that with proper planning and saving, it’s possible to ensure that you will have everything necessary for your later years. Remember to start early, diversify your investments, and create a budget so that you can reach your retirement goals.