Planning for Retirement When You’re 10 Years Out

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A big part of planning for retirement is determining exactly what you’re going to have to count on, financially, when you stop drawing a regular paycheck. This includes pension plans, your savings, earnings from investments, etc. If you’re 10 years away from the date you want to retire, many experts will say you need to have 75% to 80% of the money you’ll need already saved up. However, it is never too late to develop a strategy for your retirement.

Find Ways to Save

If you’re falling short of your goals, don’t panic. Just start planning smarter. For example, most employers use direct deposit for paying employees. Have them send a percentage of that money to your savings or investment account. It’s too easy to find excuses not to save money on your own, which is why it’s smart to have your employer set that up for you.

People who have their paycheck deposited directly into a checking and a savings account save almost $90 more per month than those who don’t. That adds up over time.

New Investment Vehicle

Two of the most popular investment vehicles for retirement savings are a 401(k) and an IRA. If you’ve already got portions of your investments in these areas, consider a Roth IRA or regular investment account. The reason you might fund a Roth or a regular taxable account is that you’re not going to have to pay taxes on them when you start making withdrawals, as you do with a 401(k) or other non-taxed investments. This gives you a better idea of what you’ll actually have when it’s time to start drawing down funds.  However, there are many considerations when determining which accounts to fund, so be sure to discuss it with your advisor.

Lower Your Debt

Debt will often keep people from retiring as planned. Start paying down your debt now.
Here are some tips to consider as you work to eliminate debt:


  • Rather than taking your tax refund and buying a new toy or taking a vacation, put it toward debt. Try a “staycation” in your hometown instead of a pricey trip – you might be surprised at how relaxing it is not to pack and purchase tickets!
  • Don’t refinance your mortgage, because a new loan could only prolong your payoff date.
  • On a similar note, new tax laws might make using a home equity loan for other purchases less attractive for someone this close to retirement.

At Family Investment Center, we listen to our clients as they lay out their goals for retirement, and we find ways to work toward meeting those goals with all the tools available to us. Contact us, and let’s jump-start your road to freedom.


Let’s plan for some serious freedom.

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