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INDUSTRY INSIGHT
YOUR FINANCES
SPONSORED CONTENT
CRITICAL STEPS
FOR RETIREMENT
SUCCESS
T
he most enjoyable and gratifying part of my career has been
helping folks plan and prepare for retirement, and then
ultimately seeing them live it out.
I’ve seen the world change and have noticed how
attention spans have diminished with all the constant checking of
email, text messages, and Twitter feeds, plus so many TV shows to
binge-watch. How does anybody find the time to plan out a dignified
retirement? I’ve decided to truncate my retirement message to three
concepts: Automate, Maximize and Optimize.
Automate for Accumulation
To those in their 20s and 30s, I would give one bit of advice:
automate your savings, preferably into your employer’s 401(k) Plan.
Start with just 1% of pay... or you’ll be much happier and thank me
later if you start somewhere north of 3% of salary. Don’t worry too
much about the funds (investments) at this point; there will be time
Motivate to Maximize
For those in their 40s to early 50s, you have a more complex
mandate. You are crazy busy; we might even say overwhelmed.
You’re likely raising kids, running a household, paying down debt
and maybe even taking care of Mom and/or Dad. Your mission
is to motivate yourself to make the extra effort to maximize your
retirement savings. By maximizing I mean calculate and determine
how much you should be contributing. You need to understand ALL
the benefits your employer offers, and you need to be sure you’re
taking full advantage of all those perks. You might need to meet with
an advisor who can help you figure this out. This is the time when you
can really make a huge impact 10 to 20 years down the road.
Organize and Optimize
If retirement is in the crosshairs, you are going to need to get
your ducks in a row. You are about to make a series of very impactful
choices: 1) when to stop working; 2) when to start collecting Social
Security; 3) when to start drawing from your savings and investments;
and 4) you also might need to decide how to pay for health care.
These are four separate decision points.
There is a common misconception that the day you stop working
is the day you go to the local Social Security office and apply for
benefits. That is a very outmoded retirement model and it is broken.
Today, for example, it is common to retire from work at 62, start
drawing from your 401(k) or IRA at 65 and start collecting Social
Security at 70. The average American household will receive just
under $1 million in Social Security benefits; if taken too early or too
late, you could be leaving hundreds of thousands of dollars on the
table. You need to optimize (carefully evaluate the timing of ) your
Social Security and retirement benefits. Get organized and optimize
your benefits—it’s worth it if you do!
Who We Are…
• As fiduciaries – serving your best
interests and avoiding conflicts of
interest
• As financial strategists and
coordinators – helping you design
and take the actions needed to
take the best possible care of your
total financial situation
• As astute observers of
markets, politics, technology, and
demographics – helping you
assess the impact of global forces
on your assets, your community,
and your peace of mind
to adjust all that later. At this point, your one-and-only mandate is
to GET STARTED! Just get started—that will be the most significant
action you could possibly take at this stage.
McKinley Carter
Wealth Services
100 Bradford Road, Suite 400
Wexford, PA 15090
724-940-4400
mc-ws.com
McKinley Carter Wealth Services, Inc. (“McKinley Carter”) is an SEC-registered investment adviser. For additional information about McKinley
Carter, including fees and services, send for our disclosure brochure as set forth on Form ADV using the contact information herein. Please read
the disclosure brochure carefully before you invest or send money.
This Industry Insight was written by Rod Diaz, CRPS®,
AIFA®.
Rod is a Financial Strategist and Retirement Plan Specialist
in the Wexford office of McKinley Carter. He uses his
deep expertise in client relationships and investment
management to help Wealth Management and Retirement
Plan clients identify their financial goals and needs, and
design appropriate financial investment strategies.
NORTH ALLEGHENY
❘
SPRING 2018
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