Thinking about your retirement can be exciting. Freedom from the whole “I have to be here” and “I’ve got to do this” demands of work is definitely appealing. Who doesn’t want to fast-forward to the day when you can do all the things you’ve dreamed about without having to answer to an employer? Still, thinking about retirement can also be scary. What if you don’t have enough to money stashed away to retire the way you want — or when you want?

The best way to beat back fear is to empower yourself with information, preparation and a solid action plan — whether you’re 30 years old or five years away from retirement. Following are a few basics to help.

Set a target date for retirement.
When do you envision leaving the workforce? When you’re 60, 66, 70? Honing in on your likely retirement age is key to planning. Knowing how many years you have until your anticipated retirement date will affect how much you contribute to your retirement savings each month or year. It’ll also guide decisions about the way you invest. If you’re 30 years from retirement, you may want to consider investments that have higher risk, but the potential to generate bigger returns. If you’re five years from retirement, low-risk investment with guaranteed returns may be a better choice. Should we mention that target date funds are a good option?

Determine how much you will need to live during retirement.
Be realistic and have a clear idea of what you will need to pay your bills each month. Will you still have a mortgage? Even if you own your home outright, you’ll still have property taxes. Will you be eligible for Medicare when you retire, or will you need to pay for an individual policy until you reach 65? Be sure to factor in some wiggle room for inflation. Utilities, food and medical costs inevitably will be more expensive than they are now. Long-term care also should factor into your monthly plan.

Understand where your retirement income will come from.
Will you have a company pension? Or are you self-employed? If you work for yourself, you’ll have to set aside more money on your own. Are you contributing the maximum to your 401(k) each year? Make sure you’re taking full advantage of your company’s matching program. Don’t leave free money on the table! How much do you anticipate receiving from Social Security? Answering all of these questions will help you determine what needs to be done to get you from where you are to where you want to be.

Get expert help to make a plan.
A financial advisor can help you chart a path to a secure retirement. He or she will help you evaluate a wide variety of investment options — stocks, bonds, mutual funds, annuities, 401(k) funds, SEP plans and IRAs — to see which are best for your timeline and needs. With expert guidance, the right tools and services, you can retire with confidence. So, don’t wait. It’s never too early or too late to start.

One of our CFS¹ Financial Advisors is ready to help you retire with peace of mind. Call 317.916.6131 or fill out the form below and a member of our team will reach out shortly.