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Retirement planning is one of the most important financial decisions a person can make for their future. In order to properly plan for your later years, you must start early. Most people have a general idea of retirement plans but have difficulty figuring out the details. So, we've put together a retirement planning guide that can help you learn more about this financial strategy.
A retirement plan is a collection of financial strategies that cover savings and investments that intends to distribute money that will help you sustain yourself once you retire. With your representative, you will agree on a retirement income goal and then find a way to work towards this goal. To do this, you will identify your income sources, determine your expenses, draw up a savings program, manage your assets, and manage the risks involved in your investment plans.
If you are a young adult just getting started in the job market, you may not have enough income to put aside many funds. However, one advantage you have is a lot of time to let investments mature. Compound interest can significantly increase any funds you invest this early. You may be able to make more money in the future, but you will never be able to make up for your lost time.
Riskier investment plans in stocks can be used for younger clients with 30 or more years until retirement. Historically, stocks have consistently outperformed other investments. However, they are volatile, and not all individuals may get this benefit.
For clients with fewer years until retirement, investment plans should focus on their income and preserving their capital. Thus, planners will invest these clients' funds in less risky securities to seek growth of their savings over a shorter period and help them avoid inflation.
Before finalizing your retirement plan, your representative will usually calculate the after-tax returns and assess risk tolerance. This stage is vital for getting an idea of what you'll have to work with once retirement begins and the plans have run their course. Estate planning is also a consistent part of this whole process.
Retirement planning is an essential part of one's future life. Thus, keeping in touch with your representative and getting a consultation should be easy. Also, for many clients, real estate is a large part of their future plans in terms of housing and a source of income. All these factors indicate that you should choose a relatively local firm within easy reach and has a great understanding of the area, including the real estate market and local investments. Equitrust Financial Group is an experienced firm in the Illinois region, with multiple locations for your convenience. It is an excellent choice for retirement planning for clients in the area.
We take client education seriously. Over the years, we've advised thousands of clients on the ins and outs of various plans. Clients have known precisely where they're putting their money and what to expect from it. Here are some of the most frequently asked questions about retirement plans:
What is the process of retirement planning?
Planning for retirement begins with understanding the time horizon that you have. Thus, consider your current age and your planned retirement age; this will give you and your representative an idea of how much time you have to seek your goals. Next, you will work together to determine your retirement income. Thus, you'll have a concrete plan to work towards.
What steps should be taken in retirement planning?
After you've decided how much you'll need for retirement, the next step is to choose a retirement plan. Use all the stages in the retirement planning process to find a smart choice in retirement plans. Once you've worked with your representative to tailor the choice, start regularly contributing to the savings and investment plans you've chosen.
When should I start planning for retirement?
There's no time like the present. The earlier your retirement planning begins, the less demanding the process. By starting early, you increase your opportunity to reach your savings goals. Most investment plans are also best executed long term. Thus, the longer your savings and investments mature, then the longer the time horizon you have to seek results.
Find out more about caring for your future with retirement planning by contacting us or calling (847) 317-0200.
No strategy assures success or protects against loss. Investing involves risk including loss of principal.