The annual Trustees Report for Social Security has become an annual reminder and sobering wake-up call that financially preparing for your retirement today is critical!
This week’s Weekly Market Review highlights the takeaways and provides some historical perspective, but if you want to view the actual report it can be viewed HERE. If you aren’t already saving and investing at least 15% of your current compensation towards your retirement, take action to put a plan in place to get the 15% working for you as soon as possible.
If you have an employer sponsored retirement plan, such as a 401(k), payroll deductions are easy and convenient and you may even receive some matching contributions from your employer! Many plans now offer automatic step-ups to help you increase your contributions over time. Self-employed or don’t have access to a plan at work? IRAs, Roth IRAs and other types of retirement accounts are easy to set up and provide great tax preferences. While these typically can’t be payroll deducted, they can be set up for auto-draft from your bank account making them easy and convenient.
Over the last 20 years in this business I’ve heard all the excuses, but the most common is I can’t afford to save for retirement. Given the facts that we are living longer, most don’t have a pension, projections that some of your Social Security benefits may not be paid and inflation; I say you can’t afford not to save towards your retirement.
Saving for retirement has never been more important and has also never been easier. Make retirement a financial priority today so that someday retirement is a financial reality!
As always, we hope you find the Weekly Market Review both informative and interesting. Have a great week!
Trevor N. Coe, CFP®