Fiscal Fitness for Your Retirement Plan 

Regardless of your fitness level, you will most likely not be ready to run a marathon with just one day, or even one week, of training. From your average jogger to your elite athlete, a marathon is a pinnacle feat (pun, intended) in any runner’s career. The thought of enduring months of training to reach that finish line at the end of 26.2 miles is a lot like saving for your ideal retirement. Both journeys require planning, diligence and a long-term vision; both are a full-scope commitment. Like preparing for any type of fitness routine, here’s how to get started in preparing for your retirement plan:

Set Your Goals and Share Them

People who go the extra mile to document their goals and share them with others are 33% more successful in achieving said goals; compared to those who stopped at just the idea. This practice could have significant impact on your retirement planning success.

When you take the time to document your vision, it allows you to project how much savings you’ll need to support your dream. When you share your goals with your family and/or close friends, it ensures buy-in from those who matter most to you, increasing your ability to adhere to a budget.

Begin Your Program, Now!

Time is your greatest strength as you execute your retirement savings plan: your retirement plan will be in better shape the sooner you can begin saving. According to The American Institute of CPAs, a 25-year-old who saves $400 per month for retirement, in a tax-deferred account earning 4% per year, would accumulate $472,785 by age 65. By comparison, using the same savings and growth assumptions, someone who starts saving at: age 35 would have $277,620 by age 65; age 45 would have $146,710; and age 55 would have $58,900.

Of course, these figures and rates of return are hypothetical. Regardless of the rate of return, it’s important to understand all the benefits of a long-term savings plan

Cross-Train

Your company’s 401(k) plan isn’t the only program around. Similar to how an effective fitness routine is a blend of different exercises, it’s important to have a blend of taxable, tax advantaged and tax-deferred retirement savings accounts.

Stick To It

Get the most out of your program by staying disciplined and continuously saving and contributing to your retirement account. To help you stay on your financial A-Game, do not hesitate to ask for some coaching. Our team of financial professionals can identify opportunities to improve your budget and maximize your retirement savings plan, all while providing you with the confidence to achieve your retirement goals.

SOURCES:

2015-10389 “Dominican Research Cited in Forbes Article” American Institute of CPAs Department of Labor “The Retirement Savings Crisis: Is It Worse Than We Think?” by Nari Rhee, PhD, National Institute on Retirement Security, June 2013.

Gracio Garcia is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS) 160 Gould Street, Suite 310, Needham, MA 02494, (781) 449-4402. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor. Field Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. The Bulfinch Group is not an affiliate or subsidiary of PAS or Guardian. Life insurance offered through The Bulfinch Group Insurance Agency, LLC, an affiliate of The Bulfinch Group, LLC. The Bulfinch Group, LLC is not licensed to sell insurance.

PAS is a member FINRA, SIPC. 2016-28749. Exp 9/18