Page 77 - Senior Link Magazine Summer 2026 - Online Magazine

SENIOR RESOURCES

FINANCIAL FOCUS®

Saving for Retirement: Are You Guessing or Planning?

interest has to work in your favor.
Small amounts set aside automatically
each paycheck have the opportunity
to grow significantly over decades.

Live below your means. Spending
less than you earn is one of the most
powerful wealth-building habits.
When your income rises, save and
invest the difference instead of
upgrading your lifestyle.

Keep your debt under control. Since
credit cards and other high-interest
debt can slow your progress, pay off
balances monthly when possible.
Invest consistently. If your employer
offers a 401(k), aim to contribute at
least 10%-15% of your salary, and
increase your contributions after
et’s say you dream of spending what health care might cost you every raise. If you max out your
your retirement mornings on later in life. Build a realistic monthly 401(k), a traditional IRA or Roth IRA
La warm beach, coffee in hand, budget, then multiply by 12 months may offer additional tax-advantaged
waves rolling in. To get there, you had to find your annual need. Adjust this growth (eligibility and contribution
a simple plan: save $1 million and buy amount for inflation until the first limits apply).
the beach house you always wanted. year of retirement.
Boost your income when you can.
But when retirement arrives, reality Then, multiply that figure by 25 to get Develop new skills, ask for a raise,
hits. After accounting for keeping a sense of how much may be needed or explore a side income. Every extra
your current home, everyday to save. It's a formula based on the dollar saved moves you closer to your
expenses and health care, $1 million idea of withdrawing 4% annually goal.
doesn't stretch as far as you thought, from your savings, assuming you
and the beach house remains a dream. retire in your mid-60s. If you need The difference between a retirement
The problem wasn't your discipline $60,000 a year, your target is around you love and one full of compromises
– it was that your number was never $1.5 million. You may need more often comes down to the planning
really your number. It was arbitrary, or less depending on your lifestyle, you do today. Know your real
not anchored to what your ideal health, unexpected expenses, Social number, build a solid plan and get the
retirement would actually cost. Security benefits, and other income. right help along the way.
No single rate or strategy will work
How can you make sure your for everyone. A financial advisor can This article was written by Edward
retirement number is right for you? help you determine your number and Jones for use by your local Edward Jones
strategy. Financial Advisor.
A solid savings goal starts with a clear
picture of the retirement you want. Once you know your target, the path Edward Jones, Member SIPC
Think through where you plan to forward becomes clearer. Here are a
live, whether you'll keep your current few tips for next steps:
home or downsize, how much you
plan to travel, if you'll help children Start early. The sooner you begin
and grandchildren financially, and saving, the more time compound

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