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May 11, 2022

Are You on the Right Financial Track for Retirement?

Consider these strategies to help develop your retirement savings.

If you are planning to retire in the near future, now is the time to focus your retirement plan for the future that you want. Consider the following advice to see how well your strategy is developing, and remember it is never too late to start saving.

Limit the amount of debt you have

By contributing more to your mortgage payments you can reduce or eliminate debt before you retire. Not only will this be one less debt to worry about, but it will minimize the amount of retirement income that goes toward interest payments. To avoid debt in the future, plan for medical expenses with long-term care insurance or by starting a health savings account. Our team at Citizens First Bank can help you find the right strategy to become debt-free with budgeting and debt consolidation loans.

Invest to acquire retirement income

To meet the expenses of retirement, first decide what kind of lifestyle you plan on maintaining and what level of financial support this will require. Your income during retirement will be provided through your investments. To secure a steady stream of income it is important to have a diversified portfolio. A well-balanced portfolio includes a blend of stocks and bonds that are in diverse industries ultimately protecting your savings from downturns in the market. 

Maximize retirement savings accounts

In the 10 years leading up to retirement, consider increasing contributions to your retirement accounts such as your 401(k) or IRA. By doing this, you can maximize the contribution from your employer. If you have duplicate accounts started with multiple employers, consider consolidating them into one institution. You can also estimate your expected income from Social Security to get a better idea of how you will cover the remaining expenses.

Consider where you will be retiring

Location and the kind of housing you choose can heavily impact your expected retirement expenses. From state to state, sales and property taxes can vary widely, so you can plan a strategic move to a lower tax state if it benefits you. Similarly, downsizing your home can be a great way to free up your investment in real estate and reduce your cost of living.

Our experienced team will help find the right strategy to help you save for retirement. Citizens First Bank offers various saving plans and loan options to help you succeed in fulfilling your financial planning goals. Feel free to stop in, give us a call, or visit our website today.