Rialto retirement planning
Rialto retirement planning begins -- and ends -- with one question: Will my nest egg last throughout my lifetime? To ensure that it does, Rialto residents need to begin planning for retirement now.
Rialto residents actually have an advantage over other residents in their California future planning. The cost of living in Rialto is lower than most CA cities. In fact, according to officials in this California city, the cost of living in Rialto is one of the most affordable in the region. Median home prices are right around $375,000, compared to half a million -- or more -- in other Southern California cities.
Start Planning Now
A lower cost of living means that those beginning their Rialto retirement planning have a bit more to tuck away each paycheck than other CA residents. The earlier you can start saving, the better. Savings put away when you are young give you the advantage of compounding, which means your money grows faster as interest is added each year. Of course, as part of your Rialto retirement planning, you also want to continue planning to add to your savings so that your nest egg is big enough to last no matter how long you live.
According to a recent study by the Government Accountability Office, the life expectancy of Americans continues to increase. Good news indeed, but also a prime consideration in your Rialto retirement planning. The GAO study found that people aged 62 today have a 47 percent chance of living to their 90th birthday, while a recent study from the U.S. Department of Labor found that the average time spent in retirement is 20 years. Will your savings last that long?
To ensure they do, you must start your Rialto retirement planning now. The Labor Department study found that fewer than half of Americans have calculated how much they need to save. Experts estimate that you will need about 70 percent of your preretirement income to maintain your standard of living when you stop working. If you are among the nation's "lower earners," you may need closer to 90 percent of your current income.
Planning to Make Your Money Last
Social Security benefits are the foundation of retirement planning for nearly all households with someone aged 65 or older -- providing annually inflation-adjusted income for life -- and are the source of half or more of total income for about 64 percent of those households, according to GAO officials. What this means for your Rialto retirement planning is that the later you can begin taking your Social Security benefits, the better.
While you are eligible to begin receiving Social Security at 62, you will only receive 70% of your full benefits. If you can wait to retire until you turn 67, you will receive your full Social Security benefits. An added advantage to this for Rialto residents is that you'll remain in the workforce five years longer, which will allow you continue adding to your savings.
Making up the difference for most Americans is a retirement plan through their employers, such as a 401(k) or a 403(b) plan for California residents. Individual Retirement Accounts also can help close the gap between Social Security benefits and what you need to live on in your later years.
When you retire, you will be faced with making some critical decisions on what to do with all that money you saved to ensure you have a lifetime income stream, according to GAO officials. You may take a lump sum, then invest that money in stocks, mutual funds or annuities. You also make take the money in installments, which can help with budgeting in your Rialto retirement planning. There also are hybrid plans that offer a mix of lump sums and installment payments.
Your next decision will be to figure out how much to withdraw each year to cover living expenses that go above what your Social Security or installment payments cover. To protect your nest egg, experts advise taking out only about 4 percent each year, which will keep the principal in place and allow the account to continue growing.
Get Expert Advice
Navigating the byzantine world of protecting your financial future can be difficult. That's why you should seek the help of a qualified financial professional. This person can keep on top of changes in the stock market and tax laws that could impact your Rialto retirement savings, as well as tell you if you are on track or need to adjust your strategies.
While there is a lot involved in Rialto retirement planning, the earlier you begin, the easier it will become. Once you have a partner in place to help advise you with your Rialto retirement planning, you can relax and watch your money grow over the years as you work towards your golden years.
Retirement Planners In Rialto
Financial Engines Advisors, LLC - Los Angeles III - Irvine17901 Von Karman Ave
Irvine, CA 92614