Three-Legged Stool of Retirement Income
In todays episode of Money Talks, Greg and Dan introduce the Three-Legged Stool of Retirement Income: Personal Savings, Social Security, and Employer Contribution Plans.
Dan gives us a little history and statistics about why pensions have fallen by the wayside and how responsibility has become that of the employee’s to save for their own retirement. Dan gives a quick explanation of different types of Employer Contribution Plans, touching a little on what a Retirement Date Fund plan is versus an Asset Allocation Fund, and if these plans are not offered by your employer, remember you always have the option of opening your own IRA.
Sound confused? Don’t be! Dan uses simple examples and explanations that even your Aunt Betty would understand.
But whatever you do- Save Early, Save Often.
Questions your Financial Planner or Adviser may ask you:
- When do you plan to retire?
- What will occupy your time when you retire? Volunteer work, musical instrument, travel?
- At what level of income or lifestyle do you see yourself living after retirement? How much money will make you feel comfortable in retirement?
- Where do you plan to retire?
- How old are you now?
- Does your employer offer a 401K plan or another contribution plan?
- How much personal savings do you have?
- How much do you think you need to save starting now to retire as you desire?
- How do you perceive Social Security?
Coming Soon: Social Security, Part 2 of The Three-Legged Retirement Income Stool