Dependable Retirement Planning Advisors

Columbus Retirement Planning

Columbus retirement planning involves one million dollar question: how much money do you need? Financial planners have developed all kinds of strategies to answer this question. Unfortunately, while you can learn from their estimates and suggestions, the only one who can really anticipate your budget is you.

Knowing what not-to-do during your Columbus retirement planning can help you avoid potential pitfalls. Not surprisingly, a lot of people make same financial mistakes when planning their golden years. If you take the time to become aware of these mistakes, you can avoid them! For example: planning to borrow from your retirement savings may seem like no-big-deal, but it's a bad idea!

How Much Money Do You Need?

You may have heard that you need 80% of your pre-retirement income in order to be comfortable during your later years. Or, you may have heard 75% or 60% or some percentage along those lines. However, you can't count on that estimate. In fact, some people will spend significantly more money during their Ohio retirement than working years, due to extravagant traveling, or buying a new home.

So, during your Columbus retirement planning, you have to really sit down and consider how much money your going to spend, not the averages. You may spend considerably less than most people, if you don't plan to do a lot of traveling, and you've paid off your mortgage. You've sent the kids to college, already, and you're debt-free.

First of all, consider how much you currently spend. Then, see if any of those expenses will disappear when you retire. For example, if you pay commuting expenses, or have to buy work clothes, you can subtract those costs. If you pay other work costs, such as doggy daycare, subtract those too.

Next, consider how you're planning to enjoy your Columbus retirement. Planning to travel will significantly increase your costs, as well large expenses like buying a car, or home. Don't forget the possibility of a kitchen remodel, too, or other major repair you might need (or want) in your Columbus, OH home. Also, consider any other expenses that may go up, such as medical care. Also, don't forget to include health insurance costs.

You may want to consult with a Columbus retirement planning specialist to help you determine the approximate amount you will spend during your retirement. Sometimes, it's hard to estimate the costs of travel, medical expenses, and so forth. Columbus retirement planning advisors have a lot of experience estimating costs, and they may be able to help you.

You also need to calculate the taxes that you will need to pay on your retirement income, which is one reason you may want a Columbus, OH financial advisor. Taxes, as you probably know, are pretty complicated. Unless you have a good understanding of tax planning, you probably want to seek the help of Columbus, Ohio financial advisor.

Retirement Planning Mistakes to Avoid

If your Columbus job offers a 401(k), don't make the mistake of not maximizing your match. Ohio employers who match 401(k)s are basically offering you free money, so you should absolutely take advantage of the opportunity if it's available in your Columbus, Ohio company. You may feel like you don't have much to contribute to your Columbus retirement planning fund, but turning down free money is always a bad idea.

You probably know that you can usually take out money from your retirement savings, if you want. However, if you can help it, you should leave the money where it is. Borrowing from your IRA, for example, means you'll be pay high taxes and maybe even a withdrawal penalty. So, if you can, let that money stay where it is and avoid planning to use it until it's time to retire.

As you probably know, it's important that you diversify your investments. This is one of the key components of Columbus retirement planning. Whatever you do, do not put all your eggs into one basket. Diversification is key if you want to have reliable, and steady income.

Also, you should update your portfolio every few years, as it may change over time. For example, your stocks may grow more quickly than your bonds, and so you will need to rebalance them. You may want to have a trustworthy Columbus financial advisor manage your portfolio to make sure it stays balanced.

Probably, the most common mistake people make in terms of Columbus retirement planning is not getting started. There are so many different choices to make, regarding how to invest your savings, how much money you need and so forth. Sometimes, it's hard to begin saving because there are so many options. Don't let the number of questions and concerns overwhelm you; the sooner you begin to plan your golden years, the better off you'll be.

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Retirement Planners In Columbus

Riley Larimore
Riley Larimore
5080 Tuttle Crossing Blvd
Suite 350
Dublin, OH 43016

Brian Mills, CFP�
Brian Mills, CFP�
2356 Benning Drive
Powell, OH 43065

Mark Aldridge
Mark Aldridge
5890 Sawmill Road
Suite 130
Dublin, OH 43017

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