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About Retirement Planning in Arlington

When it comes to retirement financial planning in Arlington there are four main things to consider - time frame, how much money you need, taxes, and your goals. All of these should be prioritized in retirement financial planning. Let’s break down some of the basics to remember in Arlington.

 

Time frame

Understanding when you want to retire in Arlington and how much time you have before you get there is crucial to retirement financial planning. Essentially, the more time you have to plan, save, and invest for retirement, the better off you will be. Retirement financial planning requires a lot of thought and when it comes to saving time is on your side. If you have a longer time frame to plan your retirement you can work towards your goals at a steady pace, rather than last minute and become stressed that you don’t have enough time to prepare as well.

 

How much money you need

There is no one size fits all number to determine how much money you may need when you want to retire in Arlington This number can vary depending on factors such as your current pre-retirement income, other sources of income, expenses, age you want to retire, and your desired lifestyle in retirement (like traveling). Most experts will say your retirement income should be about 80% of your final pre-retirement salary. For example, if you make $100,000 annually at retirement, you need at least $80,000 per year to have a comfortable lifestyle after leaving the workforce.

 

Taxes

Remember that taxes can affect your retirement plans and account. Depending on the type of retirement account you hold, investment returns are typically taxed. Also, consider taxes in the area (like in Arlington) in which you are wanting to retire. Taxes vary from state to state, so if you’re thinking about relocating research how this may impact your retirement financial planning. 

 

Goals

The only way to track your progress for retirement financial planning is to set tangible goals that are measurable. When contributing to your retirement accounts, set goals weekly or monthly to ensure you are staying on track with your desired goals. Your plan works if you stick with it. 

 

To learn more about retirement planning, check out InvestEd’s ultimate guide to retirement planning here.