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Planning for retirement is a long-term financial goal for most Americans, but how many actually reach the coveted seven-figure savings goal? More importantly, how much do you really need?
The answer may surprise you.
With inflation, the rising cost of living, and lower employer contributions to pension plans, saving for retirement is anything but easy right now.
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In fact, only 16% of retirees say they have more than $1 million saved, according to a recent CNBC retirement survey.
If you count yourself among the 30% of Americans who say they’ll need at least $1 million for true financial security in retirement, here are a few things to consider if you want to ensure you catch up on saving for that comfy retirement.
Are you behind?
It is worth noting that half of U.S. retirees have less than $145,000 saved, according to a Clever Real Estate retirement survey, about four times less than retirement plan provider Fidelity recommends for retirement.
A shocking 37% of retirees report having no retirement savings at all. This number has been growing due to various factors, including 40% of retirees being forced to take early retirement — for reasons ranging from personal health to being made redundant by an employer.
With so many factors to consider, it’s important to understand exactly what your financial goals are and how to prepare accordingly. It may be worth worth your while to connect with a financial advisor who can help you navigate the retirement planning process can help bring you peace of mind.
WiserAdvisor is a platform that connects you with qualified financial advisors who can create a customized financial plan for your retirement needs.
To get started on your retirement plan, simply fill in your info, browse your advisor matches with WiserAdvisor’s comparison tool, then book a free consultation within minutes to lock in your best financial future.
Start Your Search
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Factors impacting retirement planning
According to experts like Suze Orman, even if you have a cool $2 million in the bank for retirement, that’s still “chump change”. She warned you’ll need plenty more to retire comfortably if you expect to live into your 90s.
The figures are wide ranging. But that’s to be expected, given everyone’s golden number is different. No matter the amount you’re aiming for, starting sooner rather than later is always better.
If you want to put boost your nest egg over time without having to think about it, you can use Acorns to start saving and investing for retirement with just your spare change.
When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future.
For those looking to enhance their investing strategy as well, Acorns offers different tier memberships, including a Gold tier that allows you to customize your portfolio by adding individual stocks and includes a retirement account with a 3% IRA match.
If you sign up for Acorns today, you can receive a $20 bonus investment.
Read more: Cost-of-living in America is still out of control — use these 3 ‘real assets’ to protect your wealth today
More ways to diversify IRA
Whether or not you’re behind, a quick win to accelerate your retirement pot is to maximize your IRA contributions. For 2024, the annual contribution limit is $7,000 if you’re under 50, or $8,000 if you’re over 50.
Contributions to a traditional IRA may be tax-deductible, so you can lower the taxable income you report in the year you make contributions. The money then grows tax-deferred, which means you’ll pay taxes on it once you withdraw the funds during your retirement.
This can play to your advantage if you expect to be in a lower tax bracket once you retire. Be careful not to end up hit by a tax torpedo, where your Social Security benefits actually put you in a higher tax bracket than you anticipated.
Contributions to a Roth IRA differ because they’re made with your after-tax dollars, and your earnings grow tax-free. Withdrawals during retirement are also tax-free, so long as you meet the right conditions. This account is more beneficial if you anticipate you’ll be in a higher tax bracket once you retire.
If you’re still pre-retirement and feeling the need for advice on how to choose and manage the best IRA accounts for you, RothIRA.org matches you with an an advisor who can provide personalized advice.
It’s a simple, straightforward process: Simply enter your information, and then you will be automatically matched with 2 or 3 advisors that are pre-screened and licensed with SEC/FINRA who suit your needs. From there, you can schedule a free, no-obligation call to make sure your match is the right fit for you.
Plus, RothIRA.org offers peace of mind: All their advisors are pre-screened and licensed with SEC/FINRA.
Get Matched
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But the next question after making your contributions is what to put those funds toward. There are plenty of investments you can make within an IRA, and the right mix will depend on the level of risk and return you’re seeking.
If you’re keen on making gold a key part of your retirement strategy, consider opening a precious metals IRA with help from Priority Gold. This retirement account can help you stabilize your finances by allowing you to invest directly in physical precious metals rather than stocks and bonds.
One of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau and a 5-star rating on Trust Link – Priority Gold has helped thousands of clients protect their retirement.
Real estate investing for retirement
On the other hand, platforms like Arrived and First National Realty Partners allow you to diversify your IRA with income-producing real estate investments.
Arrived lets you invest in residential rental properties without taking on the work of being a landlord. Backed by world-class investors like Jeff Bezos, the company offers SEC-qualified investments and flexible investment amounts.
The simplified investing process allows accredited and non-accredited investors to tap into this inflation-hedging asset class for a more diversified retirement portfolio.
Here’s how it works: Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, you simply choose the number of shares you want to buy and the Arrived team takes care of all the details.
And residential properties aren’t the only way to invest in real estate through an IRA.
Commercial real estate has long been touted as a wise investment for adding stability to your portfolio, outperforming the S&P 500 over a 25-year period.
First National Realty Partners (FNRP) provides access to high-quality commercial real estate investments, allowing accredited investors to access institutional-quality commercial real estate investments — without the legwork of finding deals yourself.
The team has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart, and Whole Foods, and provides insights into the best properties both on and off-market. You can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
