You should start your retirement planning with the end goal in mind. Even if you’re in your 20s and just launching your career, it’s not too early to begin planning for your future retirement. Planning early may help you manage your cash flow and avoid unnecessary spending while you are building your portfolio. 


You can consult with a financial advisor to help you create a retirement plan that is aimed toward achieving your goals.


Here are some financial decisions you can make to start planning for your post-retirement life successfully: 


  1. Assess Your Streams of Income and Cash Flow 

The first thing you need to do is assess your current income or revenue sources and compare that to your expenses. You need to control your expenses so that you can put something away for considerable savings, investments, and retirement plans. 


You also need to include recurring bills, transportation costs, mortgage or rent, medical care, taxes, and debts. Although it is advisable not to incur debts unnecessarily, you may still have student loans or mortgages you are currently paying off. Include them in your financial planning. 


If you identify your needs, you can determine funds you can set aside for wants and short-term goals such as vacations, leisure, wardrobe, new car, and the like.


  1. Assess the Amount of Your Retirement Contributions


With stable income and a portfolio, it’s likely that a  4 percent yearly withdrawal (for example) can help you disperse your retirement funds within your target retirement years. 


Your withdrawal rate may need to be re-evaluated for inflation periodically. Consult your financial advisor to help you evaluate your portfolio and yearly retirement income. 


You can also include your Social Security pension income in your retirement withdrawal. If you come from a double-income household, the lesser-earning spouse can begin collecting pension benefits at age 62, while the other collects at full retirement. 


This way, you can avoid dipping into your retirement savings in cases of emergency. Another strategy is to set aside some of your retirement payouts for additional investments or things you love, like traveling. 


  1. Control Your Spending 


It can be challenging to save for your retirement if your expenses are over budget. You need to control your spending and learn to prioritize. Delayed gratification is a good practice to adopt when it comes to spending. Before making a significant purchase as a “reward” to yourself, pause and check if it will affect your future financial goals. 


It can be beneficial to practice frugality, especially if you are an average wage earner. A salary increase,for example,  is not a license to increase your expenses. Increasing your investments and retirement contributions can potentially be more beneficial because your retirement strategies work toward retiring early with room to spare in your budget to live comfortably even during retirement. 


Buying an annuity may also generate additional revenue. Annually evaluating your retirement budget and portfolio allows you to adjust for economic changes, inflation, and tax increases. Life changes should also be considered, like marriage, illness, relocation, loss of job, and the like.




Preparing for your future is something that you may want to start today.


At Financial Advisor Albany, we strive to work toward achieving your financial objectives by developing a personalized plan. We provide retirement planning, tax planning, investment planning, estate planning, and more. 


Disclaimer: This article is limited to providing general information about financial services and access to traditional investment-related information, general investing publications, and the like. Nothing in this article is a solicitation to transact in securities, or to provide personalized investment advice. The advisor’s professional designation, certification, education, degree, or license is not a guarantee of satisfaction or results should a client engage the advisor. All investments involve risk of loss, different types of investments involve differing levels of risk, and there is no assurance that the future performance of any investment will be profitable or match any prior performance.


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