KNOXVILLE, Tenn. (WVLT) – After a tough year, many older Americans are looking into retiring early. Financial professional John Vandergriff from Blue Ridge Wealth Planners shows us how to get ready at any stage in life.
“Too many people think oh, I’ve worked a certain amount of time so I should just retire. Really you’ve got to look at your savings and decide ‘Do I have enough money to make it…hopefully the rest of your life?’”
He said a good rule of thumb is to look at what you’ve saved and if your lifestyle needs more than 4 percent of that, hold off on retirement.
Vandergriff suggests taking inventory of your savings, 401K, and IRAs. Work with an expert for a comprehensive plan.
If you’re a few years or even further from retirement there are steps you can be taking now to make sure you’re on track.
“Have an idea of where you want to be and what it’s going to require. For younger people … we might not have social security as we understand it today. So more and more emphasis will be done on how you’re saving money. Taking advantage of free money in your plan, putting in at least what your company matches in your 401K. Paying off debt, putting it into buckets that can give you tax-free benefits.”
“I tell clients they should be saving at least 10-15% of their salary in their 401(k) or other retirement savings account,” he said.
For everyone he said, get a plan.
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