Posted by: Garcia & Cuadra, PA | April 25, 2016

How To Prepare with Retirement Planning

Retirement Planning SolutionsLet’s face it—retirement planning can be overwhelming and difficult. However, if it’s done properly, carefully preparing in advance will be your key to a stress-free, enjoyable retirement in Tampa—exactly what you dreamt it could and should be.

When Should I Start Retirement Planning?

No time is too early when it comes to retirement planning in Tampa. Think about it this way—the sooner you start saving, the more money you will have in the long run (provided you can afford to save, that is). For example, if you start saving:

  • $20,000/year at the age of 30, you will have $700,000 saved by age 65.
  • $20,000/year at the age of 35, you will have $600,000 saved by age 65.

Similarly, for some, beginning to save later on in life, but saving more money per year, may be a more sensible option. For example, if you start saving:

  • $25,000/year at the age of 35, you will have $750,000 saved by age 65.
  • $25,000/year at the age of 40, you will have $625,000 saved by age 65.

How Much Money Is Enough?

The amount of money you will need for retirement in Tampa is entirely unique to you, your needs, and your lifestyle. However, most advisors suggest retirees replace around 80 to 85% of their income during the first year of retirement. For the sake of responsible retirement planning, is important to keep in mind, life can be expensive—not to mention the cost of additional assistance and care, if needed.

In Tampa, and in the entire state of Florida, there is no state income tax, no inheritance tax, and a number of other tax breaks, too, like real estate exemptions. For those reasons, Florida is often considered to be one of the best states in which to retire.

What Can I Expect from Social Security Benefits?

As of January 2016, the average Social Security benefit for a retired person was $1,341/month (or $16,092/year), according to GO Banking Rates.

When it comes to retirement planning, it’s crucial to know what you can expect, and what you can plan for. Current data from the National Academy of Social Insurance reveals early Social Security benefits are available starting at age 62, although they are reduced. Furthermore, the full benefit age is 66 for individuals born between 1943 and 1964, although for those born after 1960, the full benefit age will rise to 67.

Garcia and Cuadra: Your Retirement Planning Experts

At Garcia and Cuadra, we are dedicated to helping you make the most educated decisions, when it comes to your financial planning. If you are living in the Tampa area, and need help with retirement planning—from budgeting, to looking at investment options, to establishing a timeline—give us a call today at 813-415-2431.

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