The Earning Years

At this stage in life, you may have more disposable income and less debt – perfect conditions for planning for your eventual retirement! The key is to maximize retirement income while minimizing the taxes you’ll still be expected to pay. A general guideline is to assume that you’ll need to replace 70-80% of your pre-retirement earning. Are you on track?

In order to evaluate where you are on your road to retirement, there are a few helpful steps you should take. First, identify your goals. Are you looking to retire early? Would you like to pay for your kids’ college? Do you plan on buying a new home? Once you’ve identified your goals, you will know more specifically what you need and when you need it, giving you the necessary foundation to form an effective plan.

However, before you set out to get where you want to go, you first need to know where you are. What are your expenses? Do you carry a high amount of credit card or other debt? Do you have an emergency fund with three to six months of income? Knowing what questions to ask can be difficult, but with one of our advisors guiding you along, the process becomes clear.

Building on the foundation created in the early years becomes even more paramount in this phase of life.  Generally the earning years provide increased income and reduced debt, creating the ideal time to save and invest for retirement.  Are you saving enough? A FireTree Financial advisor can help you put the retirement puzzle together.