by
Badgley Phelps
| Mar 10, 2020
By Jeff Walters
Retirement looks different these days. You’ll probably live longer and want to retire earlier, so you’ll need to save more. Here are four ways to prepare.
- Know your number
A quick way to estimate is to multiply your current expenses by 25. For example, if your current expenses are $70,000 annually, you’ll need to save $1.75 million for retirement.
- Invest wisely
Compound interest is your best friend. Invest early with a diversified portfolio that maps to your timeframe, goals and risk tolerance.
- Play defense
Keep an emergency fund of three to six months’ worth of expenses for life’s little surprises. And take steps to protect your identity—since identity theft can cost thousands.
- Reduce taxes
Plan charitable contributions that can help reduce your tax burden, such as direct gifts, indirect gifts and split-interest gifts.
And remember, retirement planning is about more than just money.
It’s also important to think about where you’ll want to live and how you’ll want to spend your time in order to minimize surprises down the road.
