Happy New Year! Are you ready to get serious about your retirement plan this year? When you turn the page from December to January, it’s the ideal time to refocus on your retirement goals and set the stage for a financially secure future. Whether you’re already well into your career or just starting, it’s always a good time to be planning for the future you desire. Establishing clear retirement goals can help ensure that your retirement years are everything you’ve envisioned. To kickstart 2024, here are the top five retirement goals to consider setting now:
1. Define Your Retirement Vision
This is foundational among retirement goals because you can’t build a roadmap to your future if you aren’t sure where you’re going. So, begin by clearly defining what your ideal retirement looks like. Consider your lifestyle preferences, where you want to live, and the activities you want to engage in during retirement. Visualizing your retirement can help you set specific financial goals and make informed decisions to turn that vision into a reality.
How to Get Started: Create a vision board or document outlining your retirement dreams and objectives. Share this vision with your financial advisor to align your financial plan with your retirement goals.
2. Assess Your Retirement Savings
A crucial step in achieving a secure retirement is regularly evaluating your retirement savings. Review your contributions to retirement accounts, such as 401(k)s, IRAs, and any other employer-sponsored plans. Make sure your savings rate aligns with your retirement goals.
How to Get Started: Consider increasing your retirement contributions in 2024, aiming to maximize your tax-advantaged accounts if you aren’t doing so already. If maxing out isn’t possible, be sure you’re contributing enough to get your full employer match, if one is offered. Explore catch-up contributions if you’re age 50 or older.
3. Develop a Retirement Income Plan
One of the most important retirement goals you’ll want to work toward is developing your retirement income plan. How will you generate income in retirement? How much will you need? Consider factors like Social Security benefits, pensions, investment income, and part-time work. Creating a comprehensive retirement income plan ensures that you have a reliable source of funds to cover living expenses and fulfill your retirement dreams.
How to Get Started: Saving for retirement is a worthy goal, but it’s critical to plan for how and when you’ll receive income distributions from your nest egg. Work with a financial advisor to create a retirement income plan that balances your various income sources and provides financial stability in retirement.
4. Debt Management and Budgeting
Effective debt management is a key aspect of retirement planning. Reducing or eliminating high-interest debts can free up more of your income for retirement savings and expenses. Creating and adhering to a budget is equally important to ensure your financial health.
How to Get Started: Set a specific goal to pay down high-interest debts in 2024. Many people use the snowball or avalanche methods. Design a budget that aligns with your financial objectives and allows for retirement contributions.
5. Estate and Legacy Planning
While retirement planning is about securing your financial future, it’s also an opportunity to consider your legacy, so we recommend that you consider estate planning as one of your retirement goals. Estate planning involves creating a will, trusts, and other documents to protect your assets and provide for your loved ones.
How to Get Started: If you haven’t already, consult with a financial advisor and/or an estate planning attorney to establish or update your estate plan in 2024. Don’t forget to also update beneficiaries on any appropriate accounts, as these designations typically override anything written in your will.
Are You Setting Retirement Goals for the New Year?
By setting retirement goals for 2024, you’re taking proactive steps to build a fulfilling and secure future. Even if your retirement is many years away, creating retirement goals now is a worthy endeavor because your retirement should be a time for you to enjoy life and explore new experiences, unburdened by financial stress. As you embark on this journey, remember that each step you take brings you closer to the retirement of your dreams.
At Cash Financial, we believe strongly that you can benefit from finding a trusted financial advisor to be your ally in achieving your retirement goals – and we can help! Contact us today to learn how, together, we can design a comprehensive retirement plan that aligns with your vision and provides greater peace of mind. Wishing you a year of prosperity!
