retirement planning

Retirement Planning 101: A Guide to Securing Your Financial Future

August 1, 2023

Most people look forward to retirement as an opportunity to embrace the next life phase, relax, and enjoy their lives. If you want the opportunity to maximize your retirement years, you need a solid plan for retirement first. In this blog post, we will introduce retirement planning basics to help you start securing your financial future.

The Basics of a Retirement Plan

A retirement plan and retirement strategy help ensure that you have the money you need for comfortable living after you retire. Establishing a retirement fund you can rely on means planning ahead and saving over time. Creating a plan early reduces the risk of financial struggles in your retirement years.

Start by identifying your financial goals. Consider the lifestyle you hope to lead in retirement, when you intend to retire, and any significant expenses you might incur. You should also assess your current financial position, including your income, outstanding debts, and current expenses.

Formulating a Retirement Strategy

After establishing your retirement goals, the next step is turning those goals into a strategy. Explore investment vehicles and retirement savings funds to find the best solutions for growing your wealth. You might consider accounts such as 401(k) plans, annuities, or individual retirement accounts (IRAs).

You might want the tax advantages of an IRA. Your IRA earnings remain tax-deferred until you draw from the fund. Consult your tax advisor for your situation.

Any 401(k) plan is typically sponsored by your employer. You might get an employer matching contribution, allowing you to add more to the fund without disrupting your earnings any further. Any 401(k) contributions happen pre-tax, so you pay taxes on the funds at withdrawal.

Working With Annuities

An annuity is an insurance contract. It provides you with regular income payments throughout retirement, providing a guaranteed income source for the defined period. An annuity is beneficial for your retirement strategy as an additional layer of financial security. Opting for traditional retirement funds as well as an annuity helps you diversify your retirement plan and potentially increase your returns.

Diversification protects you from potentially catastrophic losses due to volatility in the market. You should review your retirement plan regularly to ensure that your earnings are on track. Adjust your investment decisions as needed in response to market changes or even changes in your retirement needs. Proactive adjustments with a professional’s guidance can ensure that you have the retirement fund growth you need for financial security once you are ready to retire.

As you can see, retirement planning is critical for a sound financial future. Set your goals, establish a retirement strategy, and diversify your investments to improve your chances of a financially comfortable retirement. Routine assessments and adjustments also help you ensure that your plan nets the returns you intended. It is never too late to start planning for your retirement. Start planning now to get the peace of mind you need for your future.

About 1891 Financial Life

At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.