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Securing your retirement with a long-term view

When you鈥檙e in your 40s and 50s and juggling immediate financial responsibilities 鈥� monthly bills, student loans, saving for your child鈥檚 college tuition 鈥� it can be easy to let long-term goals like securing your retirement take a backseat. But delaying retirement planning can leave you playing catch-up later. The good news? Even small steps now can lead to big rewards down the line. Here are some tips that can help you balance today鈥檚 responsibilities with tomorrow鈥檚 dreams. 

Build a plan that works for you now 鈥� and in the future 

Your financial goals will evolve over time. Make a list of your long- and short-term goals in two columns. Your short-term goals include paying down debt (such as student loans), paying monthly expenses, and setting aside money for your emergency savings and to cover upcoming expenses, like buying a new car. Long-term goals include planning for retirement, downshifting your career, and leaving a legacy. 

It may feel like you can鈥檛 tackle long-term priorities now, but small contributions make a difference. Thanks to compound interest 鈥� the interest your money earns on interest 鈥� every dollar you save today has the potential to grow exponentially. Start with benchmarks, like saving 15% of your income or aiming for specific dollar amounts by milestone birthdays. These goals can keep you motivated and on track.

Leveraging your complete financial tool kit

While savings can likely meet your short-term goals, achieving longer-term milestones 鈥� like funding your retirement 鈥� requires additional strategies and resources. A financial professional can help you understand your tool kit, including what to deploy and when. 

• Employer-sponsored plans: If your company offers a 401(k) or 403(b), contribute as much as you can. And if you鈥檙e 50 or older, take advantage of 鈥渃atch-up鈥� contributions to help close any savings gaps.
• Diversify with IRAs: Explore traditional or Roth IRAs to add another layer to your retirement strategy. These let you save for retirement outside of an employer plan and can give you more control over your investment allocations. 
• Consider a brokerage account: This can be a flexible way to invest for both medium- and long-term goals.
• Think about annuities: An annuity is an insurance contract designed to provide income in the form of regular payments, either immediately or deferred to some time in the future. Deferred annuities also offer the potential for growth in the contract鈥檚 value from interest credits (fixed annuities) or equity appreciation (variable annuities). Unlike other options, fixed annuities may offer a level of protection from loss in volatile markets.

Stay the course when life throws curveballs

It鈥檚 important to have a plan that makes it easy to pivot when an unexpected event 鈥� think, a layoff 鈥� occurs. Building these strategies into your financial plan can help assure you have the resources to nimbly pivot as needed. 

1. Diversify your portfolio

A balanced portfolio helps manage risk and can promote growth over time. For example, annuities can provide stability to counterbalance the ups and downs of market-based retirement vehicles.

2. Automate your savings

Set up automatic contributions to your retirement accounts. This helps ensure you鈥檙e consistently building your nest egg without having to think about it.

3. Reassess regularly

As your life evolves, your financial plans will, too. Check in on your goals and strategies quarterly or annually to make sure they align with your current situation. 

4. Seek professional guidance

A financial professional can help you navigate complex decisions, optimize your strategy, and adjust your plans when life surprises you, like an unexpected expense or a job change.

Retirement planning isn鈥檛 just about hitting numbers; it鈥檚 about building a life where you and your loved ones can thrive 鈥� today, tomorrow and beyond. Staying focused on your goals can help you weather any bumps in the road and keep moving toward the future you envision.

Ready to plan your future? 

Even if retirement seems decades away, taking a long-term view today can help you turn your dreams into reality. Find your retirement focus today  

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