As we welcome the New Year, it’s an opportune time to reflect on one’s financial goals and aspirations. Many prioritize an independent retirement as a financial goal, working toward it as a New Year’s goal. Here are the necessary steps to prepare a New Year’s plan for retirement.

Know your goals

Knowing your retirement goals is a crucial first step. Knowing your desired retirement age, the lifestyle you want, and the funds needed annually is vital. Understanding these aspects may aid in designing an appropriate financial plan.

Assess your financial situation

Next, inventory your current financial situation. Assess your savings, investments, pensions, and any other assets that will contribute to funding your retirement. An assessment may provide a clear idea of where you stand financially and the steps to take as you work toward your retirement goals.

Develop a savings strategy

The third step is to develop a realistic retirement savings strategy. Start by calculating how much you can contribute toward your retirement goal. If you can’t commit to the amount immediately, don’t fret. Begin with what you can comfortably contribute monthly, then gradually increase this amount over time.

Diversify retirement savings strategies

Your retirement savings portfolio is key to retirement planning. Diversification may help cushion the risks associated with individual asset classes. Consider a balanced mix of investments such as stocks, bonds, mutual funds, and real estate, which may yield significant long-term returns. Also, consider including annuities, insurance products that provide a stream of income in retirement you can’t outlive, in your retirement savings portfolio.

Tax planning

Another fundamental aspect of your retirement plan should be considering tax-efficient saving and investing methods. Address after-tax, tax-free, and tax-deferred strategies in your retirement planning. Insurance, financial, and tax professionals can assist you in understanding these types of accounts and how each fits into your plan from a tax perspective.

Manage debt

It’s also crucial to manage your debt effectively. High-interest debt can deplete your savings or investments for retirement. Consider strategies such as consolidation or refinancing to lower your interest rates and pay off your debts quickly.

Review and adjust your plan

Remember to review and adjust your plan periodically. Your retirement plan should adapt to changes in income, expenses, lifestyle, or the economic environment.

Starting the New Year with a retirement plan begins with taking the first step in making important life decisions. If needed, seek guidance from financial, insurance, and tax professionals to help design your plan.

SWG4102450-1224c This information is provided as general information and is not intended to be specific financial guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.

At Tampa Bay Advisory the fact that you are looking at this website suggests that you may have questions or concerns about finances, investments, and/or retirement security. A part of that is, “Do I really need a Financial Advisor?” That is an important question. Contact us today to begin finding the answers to this and any other questions.