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TRANSCRIPT
The first step of any major journey is to make a plan for what’s to come. Reaching retirement is a journey too, one that shou ld begin
early in your working career, and this checklist can serve as your roadmap for getting started. A secure and prosperous retirement
requires careful planning and execution – from the moment you begin planning the journey until you arrive at your destination.
Educate Yourself. Learning about your options is the best way to secure your financial future. Unfortunately, working Americans receive very little
finance and investment education, but are tasked with making major decisions that will determine their retirement futures. The
best way to prepare for retirement is to begin learning the basics of finance and investments. This can be achieved by taking a
course, reading introductory books and/or working with a financial advisor.
Start Planning for Your Retirement RIGHT NOW. There is no time like the present. This proverb should be your motto for saving for retirement – the sooner you start, the more
time your money has to grow before you retire. For example, if an individual invested $50,000 over their first 10 years of
employment ($5,000 a year for 10 years), at retirement they would be ahead of the person who waits ten years then contributes
$175,000 over the next 35 years ($5,000 for 35 years). The earlier you invest, the more you will earn through compounded
returns. Get started early and use this power of compound interest to achieve your retirement goals.
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Contribute $5K for First 10 Years at 8% Growth
Contributions Value
The opinions expressed in this report are those of Boston Wealth Management and are not intended to be used
to purchase or sell securities or assets.
7 Steps to Prepare for Retirement
BOSTON WEALTH MANAGEMENT, LLC
The opinions expressed in this report are those of Boston Wealth Management and are not intended to be used to purchase or sell securities or
assets.
Maximize Your Company’s 401(k) Match. In the current landscape, future retirees are unlikely to have a pension to rely on in retirement. It’s critical that you
maximize contributions to your company sponsored 401(k) plans and take full advantage of your company’s 401(k)
match. Determine the matching cap and be sure to put at least that percentage toward your retirement each year. If
you don’t, you are turning down free money – money that could be building compound interest for your retirement.
Increase Retirement Contributions Whenever Possible. If you have not already maxed out your tax deferred contribution to your 401(k), then increase your contribution
percentage whenever you can. When you get that next raise, increase your retirement contribution percent. For
example, if you get a three percent raise, set aside half of the raise to increase your retirement contribution.
Set a Budget and Stick to It. Simply put, most Americans live beyond their means, which is the easiest and quickest way to jeopardize your
retirement future. If you spend it now, you can’t save it and let it grow for later. The majority of us fail to establish a
budget, so we don’t realize we are overspending until it is too late. Avoid this trap by setting a realistic budget and
sticking to it. Your retirement contribution should be a key priority of your budget.
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Contribute $5K for Last 35 Years at 8% Growth
Contributions Value
BOSTON WEALTH MANAGEMENT, LLC
The opinions expressed in this report are those of Marathon Retirement and Pension Consulting and are not
intended to be used to purchase or sell securities or assets.
The Best Protection from Market Uncertainty is to Invest Early, and Often. Get into the habit of contributing regularly to your retirement accounts, not only because building a nest egg for
retirement takes time, but also because the earlier you start the more likely you are to weather any dips in the
markets. Since 1934, the S&P 500 – a key stock market index – encountered plenty of volatility. However, over any
30-year period – the average time a working American has to save for retirement – the annualized return has been
positive. Making regular contributions – weekly, monthly, annually – allows you to smooth out market volatility so
you don’t invest all your money at a market high, allowing you to retire with more money in your nest egg.
Note: Each point on the above graph represents 30 years of annualized returns. For Example, the point on the above graph at Jan. 1964 represents the S&P 500
annualized return from Jan. 1934 to Jan. 1964.
Treat Retirement Accounts As Sacred. If you’ve reached this step, you’ve made a retirement plan and are executing it. Now you need to protect all your
hard work. The tax and penalty implications of raiding your retirement accounts are severe and should be avoided.
Major life events, like being laid off or a serious illness, can have a major impact on your retirement future. You must
prepare for these drastic events by amassing a savings equal to six months of your budgetary expenses. Building an
emergency fund that you can tap in case disaster strikes allows you to treat your retirement accounts as sacred so
they’re there for you in retirement.
Completing the above checklist and following it as a roadmap on your journey to retirement will put you on the correct
path toward a secure and prosperous future.
Next week: The eight questions you should ask before you retire.
0.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%16.00%18.00%20.00%
1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014
S&P 500 30 Year Annualized Returns
BOSTON WEALTH MANAGEMENT, LLC
The opinions expressed in this report are those of Marathon Retirement and Pension Consulting and are not
intended to be used to purchase or sell securities or assets.
BOSTON WEALTH MANAGEMENT, LLC
Boston Wealth Management, LLC | 286 Boston Post Road | Wayland, MA 01778 | 508.276.1098 | [email protected]
The opinions expressed in this report are those of Boston Wealth Management LLC and are not intended to be
used to purchase or sell securities or assets.