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Retirement And Investment Planning

Retirement is a goal that most people wish to achieve at some stage in their life. However, although most people yearn for retirement, they fail to create an adequate plan that will ensure a comfortable one. Sadly, they do not consider this crucial stage in life until it sneaks up on them. Retirement and investment planning are vital components for being able to maintain, & even possibly enhance, one's standard of living during retirement.

Those early in their careers believe they have a lot of time to plan for retirement when in fact retirement arrives much quicker than one might think. Retirement and investment planning takes persistence and dedication; the sooner you begin saving, investing, and planning for your future, the happier and more comfortable your retirement years will be.

Why is Retirement Planning Vital?

When it comes to retirement planning, there are many factors you may not be familiar with that might affect your fiscal security. This means that you won't have the necessary experience for identifying the vital questions and answers that can contribute to a happy, successful, and comfortable retirement; such as,

  • When should you begin taking social security?
  • Do you still require life insurance?
  • How much income will you need to generate from your portfolio when you retire?
  • Should you take your pension all at once?
  • What is the right mix of investments or mutual funds?
  • How much of your estate would you like to pass on to loved ones or your favorite charity/ies?
  • Should you consider a Roth conversion?
  • When is the best time to roll over your dormant 401(k)?

These are a few of the many questions you will need answers to in order to create and achieve a successful retirement plan. That’s why it is crucial to work with a reputable & trusted advisor who can provide you with the knowledge necessary to make informed decisions.

Lower levels of stress

Money issues are a significant source of stress. The American Psychiatric Association estimates that 70% of adults worry about money, a factor that can affect your physical health. Financial stress can cause physical conditions like heart disease, diabetes, poor sleep, and migraines. Money worries also  can cause depression and anxiety. This robs a person of the peace of mind they need to enjoy their daily lives. Taking the necessary steps to put your retirement planning in motion is vital in ensuring future financial & physical wellness.

Pay less in taxes

"I love paying a lot in taxes." - Said No One Ever!

Unfortunately, taxes could destroy a significant part of your savings and income if you are not careful during retirement. Your retirement plan should start in your working years. The taxation strategies you use when working will drastically change during retirement.

When building your retirement savings, contributing to the employer's 401(k) plan lowers your taxable income, saving you some money today. If you do not have a 401(k), you can deduct your qualifying IRA contributions to an annual limit. Consider creating a tax-free savings bucket with Roth IRA, Backdoor Roth IRA, or Mega Back-door Roth IRA. The more control you have over income sources, the higher the likelihood of reducing your taxes.

<b>Am I Too Late to Plan For My Retirement?</b>

Am I Too Late to Plan For My Retirement?

Although retirement planning should start at the early stages of your career, it's never too late to plan for retirement. However, as you get older, there are more constraints like RMDs (required minimum distributions), that may limit your options. Therefore, planning as early as possible is better. You can seek advice from professional retirement planners for the best strategies to prepare for retirement.

How Does Investment Planning Work?

An investment plan is a strategy that encompasses a person's present financial position and investment objectives. It outlines what you intend to use the finances for, the amount of time you can leave the finances invested, and the avenues you plan to put your money in to achieve the desired goals. 



Investment planning is a vital part of your retirement planning. It helps put your finances in profitable strategies that give you the opportunity for financial growth. There are many benefits to retirement planning, such as financial security, peace of mind, & coming/going as you please. When it comes to aligning your investments with your retirement goals, it is best to work with an experienced team of financial professionals. Contact C.B. Financial today!