Retirement Planning: Building Security for Your Future
Retirement may feel far away, but planning for it now is one of the most important financial decisions you’ll ever make. A secure retirement doesn’t happen by accident — it’s the result of years of intentional saving, investing, and smart planning.
At Swan Lake Wealth, we guide clients in building retirement strategies that balance today’s needs with tomorrow’s dreams. Here’s what you need to know.
Why Start Early?
Time is your greatest ally in retirement planning. Thanks to compound interest, money invested today has decades to grow. For example, saving $300 per month starting at age 25 can grow to over $1 million by age 65 (assuming 7% average annual returns). Waiting until 40 to start requires nearly double the monthly savings to reach the same goal.
The earlier you begin, the less you need to contribute each month.
Key Retirement Accounts
Different accounts provide different tax advantages:
1. 401(k) Plans
Employer-sponsored accounts that often include matching contributions. Money grows tax-deferred until withdrawal.
2. Traditional IRAs
Individual accounts that allow tax-deductible contributions (depending on income). Taxes are paid at withdrawal.
3. Roth IRAs
Contributions are made with after-tax dollars, but withdrawals in retirement are tax-free. Great for those expecting higher taxes later.
4. Other Options
SEP IRAs and SIMPLE IRAs serve self-employed individuals. Health Savings Accounts (HSAs) can also function as supplemental retirement accounts.
How Much Do You Need?
A common rule of thumb is that you’ll need 70–80% of your pre-retirement income to maintain your lifestyle. The exact number depends on your goals — whether you plan to travel extensively, downsize, or support family.
Tools like retirement calculators can estimate needs, but a personalized plan provides the clearest picture.
Common Pitfalls to Avoid
Relying solely on Social Security: Benefits were never designed to replace full income.
Not increasing savings with raises: Lifestyle creep can derail progress.
Withdrawing too much too soon: Overspending early in retirement risks running out of money.
Neglecting healthcare costs: Medical expenses often rise in retirement.
Bringing It All Together
Retirement planning is less about an age and more about financial readiness. With the right accounts, consistent contributions, and a thoughtful strategy, you can retire on your terms.
At Swan Lake Wealth, we help clients build retirement roadmaps tailored to their goals and values.
The best time to start planning was yesterday. The second-best time is today. Schedule a consultation to begin your journey toward a secure retirement.
