Financial Literacy - Retirement income planning
retirement
Can this couple retire early?

The plan in 4 steps
1) Build up emergency savings cushion.
  • This is important because Joanne and Pat work for same employer.
  • Stop buying individual stocks in taxable account.
  • Check status of old savings bond.
Tip: Search Bankrate for the highest yields on money market accounts or CDs.
2) Tweak investments.
  • Redirect monthly retirement contributions into no-load funds to reduce commission expenses.
  • Eliminate overlap in U.S. stock funds held in Joanne's 401(k) plan.
  • Tweak allocation in 401(k) to include bonds, international equity exposure.
  • In Roth IRAs, buy investments not available in 401(k) plan such as inflation-linked bonds, real estate investment trusts and commodities.
Tip: Read Bankrate's story, "How to build a sound portfolio."
3) Consider getting life insurance.
  • Look into a modest term life insurance policy that would provide a valuable buffer in the event tragedy strikes.
Tip: Read Bankrate's story, "Life insurance for different life stages." Get a quote from InsureMe, a Bankrate company.
4) Re-evaluate retirement goals in a few years.
  • Dream of retiring at age 59½ is attainable if savings discipline is maintained.
  • If retirement goals change, consider working longer to save more.
  • A modestly priced vacation home is within reach.
Tip: Read Bankrate's story, "How to tell if you're on track."

This report was prepared by Bankrate Senior Financial Analyst Greg McBride, CFA.

News alert Create a news alert for "retirement"

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed 4.08%  0.17 4.25%
15 year fixed 3.17%  0.06 3.23%
5/1 ARM 3.30%  0.07 3.37%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.36% --0.00 4.36%
50K FICO-based HELOC 4.06% --0.00 4.06%
100K FICO-based HELOC 3.91% --0.00 3.91%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.79%  0.10 2.69%
48 month used car loan 2.98%  0.06 2.92%
60 month new car loan 3.23%  0.05 3.18%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.94%  0.04 0.90%
2 Year CD 1.13% --0.00 1.13%
5 Year CD 1.76%  0.02 1.78%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.71% --0.00 15.71%
Cash Back Cards 16.41% --0.00 16.41%
Low Interest Cards 10.86% --0.00 10.86%
 
Next
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Janet Reusch

Thriving in the empty nest

It costs about $245,000 to raise a child to age 18. Do parents feel richer when the kids move out?  ... Read more

advertisement
Partner Center
advertisement

Connect with us