Planning for retirement and sustainable wealth management might seem daunting but some knowledge, a little planning, and guidance from a West Shore Bank Wealth Management advisor can get you on the right track.
We’ve been serving along the lakeshore since 1898 and are a dedicated community partner. Our trusted advisors are here to help you at every stage of your financial journey, so let’s take a look at what you should be doing for wealth planning.
Why Work with a Wealth Management Advisor?
The financial landscape is constantly changing, and the average person probably has no clue how this may impact their goals including wealth planning and retirement. This is why a Wealth Management advisor is the perfect partner to help you plan and stay on top of your financial goals.
From tax optimization, estate planning, investment management, and sound retirement planning, a highly-skilled and experienced Wealth Management advisor will be there every step of the way to help achieve your goals.
Take what you learn from this article, connect with a West Shore Wealth Management advisor, and start your planning today.
How Much to Save Per Age Bracket for Retirement
Many respected financial businesses and experts have shared their recommendations for how much you should have saved to prepare for retirement. Here is a general breakdown based on age ranges:
Ages 30 – 40: Up to 50% to 1.5 times current salary
Ages 45 – 55: Up to 4 – 5.5 times current salary
Ages 60 - 65: Up to 11 – 13.5 times current salary
While these are suggested ranges, your plan may vary based on projected lifetime income and your retirement goals. You can use these ranges when you connect with a West Shore Wealth Management advisor to discuss creating your own retirement plan.
Early Career = Early Planning
If you are just starting or are only a few years into your career, there are some simple steps you can do right now to start wealth planning. These can really help you get ahead of the game and save you from having to catch up later in life.
- Write your long-term financial goals down to help create a base for a plan including purchasing a home or starting a family
- Create a budget to pay down your student loans including paying more than the minimum to reduce compound interest
- Participate in your company’s 401k program and, if possible, elect the maximum amount
- Take full advantage of your company’s health insurance plan including disability insurance that can protect you in the event of an unforeseen situation that may put you out of work for a considerable amount of time
- Consider opening an interest-bearing savings account and research investment options that fit your budget
- Start saving for a down payment on a home and work on your credit score to increase your chances of approval
- Investigate life and long-term care insurance options while the cost will be relatively low compared to when you are older and may have more health issues
Accelerating Wealth Growth Mid Career
You’re focused on career growth, and it’s time to really accelerate your wealth management plan. This is the perfect time to make some important decisions and take action to build upon the work you’ve done. It may seem a lot to tackle, but your West Bank Wealth Management advisor can help with your plan.
- Create a will or trust, review and update the beneficiaries are named on your 401k and all other accounts, and complete other estate planning documents to ensure your financial and medical decisions are handled properly in the event of an illness or incapacity
- Consider a corporate trustee like West Shore Bank to avoid the burden falling on your family and avoid potential inter-family conflicts
- Research life insurance plans that can be modified especially if you have, or are planning to have, children
- Open college savings plans for your children, such as a 529 plan, that offers tax-free growth and is specific to covering educational expenses
- Increase contributions to your savings and 401k plans, along with student loan payments
- Participate in Roth 401k contributions if available
- Partner with your West Shore Bank Wealth Management advisor on a long-term investment portfolio that has a healthy balance of low-to-high risk investments
- Reconsider and evaluate long-term care insurance options for you and your spouse in case the unexpected happens
Coming Into the Home Stretch
At this point, you’ve been working for at least a couple of decades, and may have another 10-15 years before you want to retire. This is when you really want to ensure that you are maximizing your wealth plan to set you up for the future.
- Evaluate rolling over 401k plans from former employers to ensure the investments are efficient and well performing
- Continue maximizing contributions to your retirement accounts and if your company has catch-up plans make sure to take advantage of them
- Review your estate planning documents and insurance policies and make any necessary changes
- Have a discussion with your spouse and children about your estate plan and final wishes to help them prepare for the future
- Review your Social Security statements to make sure all earnings have been accounted for
- Consider what retirement would look like, including creating a preliminary retirement plan for income and expenses
- Have more regular meetings with your wealth manager to review your portfolio, make any adjustments, or even open additional accounts
Getting Ready for Retirement
You’ve put in the hard work both in your career and wealth management plan, now it’s time to refine your plan for retirement.
- Have a discussion with your wealth manager for what age would be optimal to claim social security benefits
- Being researching Medicare plan options that fit your needs, and enroll if you are already 65 or older
- Determine which accounts you will access first to withdraw income, and which you want to save for later
- Work with a tax expert to review what your tax situation will look like as you being to withdraw funds
- Review your estate plan and other important documents to ensure they still meet your needs and that all assets have assigned beneficiaries or are funded to a trust to avoid probate
- Ensure that passwords, information on digital assets, and other important details are organized securely and the right individuals know where to find them when necessary
Enjoy Your Retirement
You’ve reached the end of your career, probably around your late 60s to early 70s, and now you’re ready to relax and enjoy your hard work. But there are still a few items to check off before you pull the trigger.
- Have an open discussion with your spouse and children about your estate plan and who will serve in various fiduciary roles when the time comes
- Start taking annual required minimum distributions at 73 to avoid penalties
- Take advantage of annual Medicare enrollment to make any necessary changes based on your current health situation
- Review your income budget against your anticipated monthly expenses
- Consider planning an extended vacation to celebrate your years of hard work
Begin your Wealth Management Planning Today
No matter where you are in your career and how much planning you may have already done, our Wealth Management advisors can help you create a plan to maximize your investments and achieve your goals. West Shore Bank are experts with portfolio construction, identifying your risk tolerances, and being your partner to educate you about the changing financial landscape and how to adjust your plan.
Connect with a West Shore Bank Wealth Management advisor today to start your journey.
