Dependable Retirement Planning Advisors

Dearborn Heights Retirement Planning

Thinking in the long term is difficult for some people, and this couldn't be truer than when it comes to Dearborn Heights retirement planning. We often get busy with our day to day Dearborn Heights lives and something as far away as planning for our MI retirement often gets put off. This is not good, because the longer you put it off, the longer you will have to wait to retire. Here are a few very important Michigan retirement planning questions you should be asking yourself, and get some help in answering them.

When Should I Begin Saving?

The first question most people ask when it comes to Dearborn Heights retirement planning is when they should start. The short and simple answer is now. There is really no set age that you must start your Dearborn Heights account, and the sooner you do the better. The longer your money can earn dividends the better off you are, so start saving now. Do not put it off any longer than you already have. Contact your employer or banker today and get the ball rolling.

Next, How Much?

The next thing you need to determine is not only how much you will need when you retire, but also how much you need to contribute to your Dearborn Heights retirement planning account in order to ensure that you have what you need. First, you will need anywhere from sixty to ninety percent of your gross income (household) on an annual basis when you retire.

Now, the next question then becomes how many years will my Dearborn Heights retirement planning account need to sustain this amount? The answer to that is not an easy one to give. There is no way to predict the lifespan of a person with complete accuracy, and it all depends on how early you want to retire. A good practice is to assume that you will live to be around ninety five to one hundred years old. Therefore, if you retire at fifty five, you will need your Dearborn Heights account to sustain itself and you for at least an additional 40 years. If you retire at age 65, you will need 30 years from your Michigan retirement planning account, and so on.

So, once you have determined what your end figure is, you need to determine how much money you need to put into your Dearborn Heights retirement planning account now in order to make this happen. A financial analyst in the Dearborn Heights area can help you with this. You can also search online, and you should be able to fairly easily find a free calculator application. Either way, it is a good idea to find out this figure so that you know what you are up against and can be successful in your MI retirement planning.

How do I Maximize?

The next thing you need to understand in this Dearborn Heights retirement planning process is how to make your account work better and harder for less out of your pocket. The first way to do this is to see how much you can get others to contribute on your behalf. That's right; you don't have to be the lone saver in this scenario.

Most employers will offer a contribution match when you open a Dearborn Heights retirement planning account. This is a wonderful benefit to you, and something you need to take advantage of. Now, there is typically a limit to what they will match, but whatever this limit is you should be contributing at least this amount to your Dearborn Heights account. Anything less and you are basically throwing away free money.

For example, say your employer caps their Dearborn Heights retirement planning contribution amount at five percent. This means that for every amount of your annual salary, up to five percent that you put into your account your Dearborn Heights employer will put the same amount in for your. So, in effect, you are putting 10% of your earnings away in a Michigan retirement planning account, but your paycheck is only missing five percent. It doesn't make sense not to take advantage of this offer.

Keep in mind, however that the employer does not typically give its employees access to the portion of the employee's Michigan Heights retirement planning account that they have made right away. Typically, an employee must wait several years to be fully vested (that is to say that they have access to one hundred percent of the funds) in their MI retirement planning account. This is important to consider when looking for work at other companies, or for a career change. If you leave yours before you are fully vested, you lose the unvested amount that is in your Dearborn Heights retirement planning account.

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Retirement Planners In Dearborn Heights

Christopher Mollan
Christopher Mollan
31731 Northwestern Hwy.
Suite 151W
Farmington Hills, MI 48334

Andrzej Mendela
Andrzej Mendela
201 West Big Beaver Road
Suite 950
Troy, MI 48084

Todd Perry, CFP, CIMA, CPWA
Todd Perry, CFP, CIMA, CPWA
135 W North Street Ste 1
Brighton, MI 48116

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