Five Star award winner Susan Weidner Cooke, M.Ed, CLTC

How to Get Your Retirement Planning Started

Retirement is typically one of the top financial goals you’ll be working toward. It may be the furthest out, but any good financial plan starts with calculating how much money you’ll need to live on during your retirement years, putting a strategy in place to get there, and then addressing your shorter-term needs.

Many financial professionals believe you will need approximately 80 percent of your peak pre-retirement income to maintain your current lifestyle in retirement.

If your peak income is, for simplicity, let’s say $100,000, then you may need $80,000 or more each year. Multiply that annual figure by your expected years in retirement and that is your target. Given today’s longer life expectancies, you could be nearing the $1.5 to $2 million range. Do not let those numbers scare you. Again, everyone is different. Maybe you’re accustomed to living on $40,000 per year, in which case your goal is roughly $32,000 times your retirement years. That is a big difference.

Envision the retirement you want

Another factor in figuring out how much income you will need in retirement is envisioning how you want to spend your retirement years. (Learn more about setting retirement goals)

Do you want to travel? Own a second home? Leave a legacy to your family, charity, or alma mater? Or maybe you just want to live a simple lifestyle with the primary goal being to cover your basic expenses. Now’s your time to think through the world of possibilities, because the sooner you start planning — and saving — the better able you are to reach your retirement money and savings goal.

Time is your friend when saving for retirement

Setting aside even a small amount of money each month can add up over time. One common and effective strategy is to use traditional retirement vehicles, such as an employee-sponsored 401(k) or Individual Retirement Account (IRA) and set up automatic contributions. While each of these types of retirement accounts has unique rules, all offer tax benefits that can add up over the long-term.

Even if nearing retirement, it’s not too late. If you are 50 or older, “catch-up contributions” help pre-retirees stash even more money into their 401(k) or IRA than the basic contribution limits each year. (Related: Saving in your 40s and 50s: It’s never too late to get started)

How should you allocate your money?

How you decide to allocate the money you've accumulated — and the goal-related products you choose — are probably the most critical factors when it comes to creating a retirement plan. As mentioned, there are IRAs for retirement goals, as well as guaranteed lifetime income products, but depending on your life stage you may want to consider other solutions as well. Maybe that means cash value life insurance to help protect your family’s financial security and as an effective estate planning tool.

Diversification helps balance risk

Diversification can be summed up in one phrase: Don’t put all of your eggs in one basket. Regardless of what types of retirement product solutions you choose to buy, don't bet your retirement nest egg on just one. The types of products you select will vary depending on several factors, including your risk tolerance and retirement time horizon. These two factors work hand in hand. The more years you have left until retirement, the higher your risk tolerance may be.

When it’s time to determine the products and financial strategy that’s best for you, you may want to consult with a financial professional who can help you map out a plan. In the meantime, make sure you have a clear vision for your goals, so you’ll be better prepared to plan your financial future.

Provided by Susan Weidner Cooke, M Ed, CLTC - Financial Planner, Financial Services Representative

Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. 1 Marina Park Drive, 16th Floor, Boston, MA 02210. 617-585-4500.
California insurance license number: OK54106

Written by: MassMutual Staff, posted on: Jul 27, 2022

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This award was issued on 9/1/23 by Five Star Professional (FSP) for the time period 12/12/22 through 6/30/23. Fee paid for use of marketing materials. Self-completed questionnaire was used for rating. This rating is not related to the quality of the investment advice and based solely on the disclosed criteria. 1,017 New Hampshire-area wealth managers were considered for the award; 89 (9% of candidates) were named 2023 Five Star Wealth Managers. The following prior year statistics use this format: YEAR: # Considered, # Winners, % of candidates, Issued Date, Research Period. 2022: 979, 87, 9%, 9/1/22, 12/20/21 - 6/17/22; 2021: 943, 96, 10%, 9/1/21, 11/30/20 - 6/25/21; 2020: 928, 91, 10%, 9/1/20, 12/9/19 - 7/1/20; 2019: 928, 85, 9%, 9/1/19, 11/19/18 - 7/10/19; 2018: 955, 74, 8%, 9/1/18, 12/26/17 - 7/17/18; 2017: 739, 89, 12%, 9/1/17, 12/27/16 - 7/6/17; 2016: 666, 158, 24%, 8/1/16, 2/6/16 - 7/19/16; 2015: 853, 166, 19%, 9/1/15, 2/6/15 - 7/19/15; 2014: 1045, 189, 18%, 9/1/14, 2/6/14 - 7/19/14; 2013: 1049, 204, 19%, 9/1/13, 2/6/13 - 7/19/13; 2012: 743, 170, 23%, 9/1/12, 2/6/12 - 7/19/12.

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Susan Weidner Cooke, CLTC is a registered representative of and offers securities , investment advisory services and financial planning services through MML Investors Services, LLC. Member SIPC (www.sipc.org). 1 Marina Park Drive, 16th Floor, Boston, MA 02210. 617-585-4500. Neither MML Investors Services nor any of its employees or agents are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters. CRN202602-3784712

Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. The award is based on 10 objective criteria. Eligibility criteria-required: 1. Credentialed as a registered investment adviser (RIA) or a registered investment adviser representative; 2. Actively licensed as a RIA or as a principal of a registered investment adviser firm for a minimum of 5 years; 3. Favorable regulatory and complaint history review (As defined by FSP, the wealth manager has not; A. Been subject to a regulatory action that resulted in a license being suspended or revoked, or payment of a fine; B. Had more than a total of three settled or pending complaints filed against them and/or a total of five settled, pending, dismissed or denied complaints with any regulatory authority or FSP's consumer complaint process. Unfavorable feedback may have been discovered through a check of complaints registered with a regulatory authority or complaints registered through FSP's consumer complaint process; feedback may not be representative of any one client's experience; C. Individually contributed to a financial settlement of a customer complaint; D. Filed for personal bankruptcy within the past 11 years; E. Been terminated from a financial services firm within the past 11 years; F. Been convicted of a felony); 4. Fulfilled their firm review based on internal standards; 5. Accepting new clients. Evaluation criteria-considered: 6. One-year client retention rate; 7. Five-year client retention rate; 8. Non-institutional discretionary and/or non-discretionary client assets administered; 9. Number of client households served; 10. Education and professional designations. FSP does not evaluate quality of services provided to clients. The award is not indicative of the wealth manager's future performance . Wealth Managers may or may not use discretion in their practice and therefore may not manage their clients' assets. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by FSP or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by FSP in the future. Visit www.fivestarprofessional.com.