Your Guide To Retirement: How Much You Should Have Saved By Every Age

michael dinich your guide blog header

Originally published on Michael Dinich’s website.

Saving for retirement can be overwhelming. Fretting about how much money you should have saved or how much you should be saving at a certain point in your life are two questions that can weigh heavily on anyone’s conscious.

They say that every 5 years you should aim for saving the equivalent of a one year’s salary. For example, if your income is 80k a year and you are around 30 years old, you want to have at least $80,000 in your retirement fund.

Here are some bullet points on what you should be aiming for in your goals for saving for retirement:

  • 30 years of age – 80k saved
  • 35 years of age – 160k saved
  • 40 years of age – 240k saved
  • 45 years of age – 320k saved
  • 50 years of age – 400k saved

Use this as a guide for the amounts you want to have saved at certain points in your life.

There will be factors that may change the amount you put away for your fund, however. These factors include a change in career, being rewarded with a raise, or having expensive medical bills that need to be paid off.

If you are behind on your retirement goals, you can look to other means to catch up. Investing your money is an option that can reap big rewards for your retirement fund. Do research on companies you want to invest in and allocate funds to do so. Help make your money work for you so you can enjoy the retired life!

You can also set an age goal for your retirement. This number will be the focal point to how much you save and how aggressive your investment profile should be to reach your goal.

Consider what type of lifestyle you want to live during retirement. If you are thinking you want to increase or decrease your expenses, then plan your savings for your retirement accordingly.

The goal should be to set aside money every month for your retirement fund, no matter if the amount is large or small. If something comes up that restricts your budget, it’s still better to save something. Getting into the habit of saving a portion of your paycheck will help you later down the line as you begin to add more to your retirement fund!

The Top 10 Questions To Ask Your Financial Advisor

michael dinich the top 10 blog header

Originally published on Michael Dinich’s website.

Managing investments can be difficult, which is why so many people hire a financial advisor to help aid them in the process. These experts are supposed to help you plan your investments in order for you to successfully strengthen your financial safety net.

While a financial advisor’s credentials look good on paper, it’s important to remember that there are often individuals in every profession that are only offering their services in order to take advantage of their clientele base.

To avoid entrusting your money with a scam artist, make sure to ask any financial advisor you are contemplating working with these ten important questions:

1. Are you a fiduciary?

Fiduciaries are required by law to put their clients’ best interests above their own. They are required to inform clients of any conflicts of interest, including, for example, how they are compensated. You can also ask if an advisor receives kickbacks from certain products.

2. Do you guarantee a certain investment return?

This is one of the most telling signs of a fraud. Financial advisors cannot guarantee an investment return and could find themselves in legal trouble if they would. If someone tries to guarantee you anything, do not hire them, no matter how good their rates seem.

3. Who, specifically, would I be working with?

Some investment firms set up meetings with a senior advisor to gain clients before handing them over to a junior advisor. Make sure to meet and speak with the person who would handle your money, especially since it could be someone different from who you originally researched and met with. It is important to see that they check out as well.

4. What services do you provide?

The services firms provide vary, from simply investment advising to wealth management. Identify your needs and choose a firm that meets them or else there could be conflicts that arise in the future concerning your finances.

5. How much contact do you have with your clients?

If you’re more of a hands-off client, you may not care about this answer, but it is still important to know. If something drastic happens with your investments, you may want to get in contact with your advisor. Make sure they will make time for you, especially in the event of an emergency.

6. What credentials do you have?

An advisor without adequate credentials is not typically someone you want to work with. Ensure they have the proper licenses and certifications before you accept their services.

7. Can you optimize my portfolio for taxes?

A worthwhile financial advisor will have the means to strategize where to place your money for the most benefit. Not all investments work the same, so they should recognize the differences easily.

8. How much is the smallest portfolio you manage, versus the average and the largest amount?

Although you may have more than enough money to work with an advisor, some only take extremely large accounts. It is important to know if you match the profile of their typical client so you are treated as such.

9. Do you have different investment plans depending on risk tolerance?

Risk tolerance is one of the largest factors in investing, so a financial advisor should have an idea of where to start, depending on your level of comfort. If they approach each account exactly the same, this should be a giant red flag that they do not care about your best interests.

10. Why should I work with you?

Simply put, your financial advisor should impress you with this response.

Choosing a financial advisor can be one of the most challenging tasks for anyone, but these questions are a great starting point for you to weed out those who do not meet your needs. To find the best financial advisor for you, make sure to speak with multiple advisors and do not compromise what you want for their benefit!