Retirement Planning 101 - WealthVizr Learn

Planning for Retirement

Retirement planning can feel overwhelming, but breaking it into manageable pieces makes it achievable.

A common rule of thumb: Aim for 70-80% of your pre-retirement income annually.

The 4% Rule:

Multiply your expected annual retirement expenses by 25 to get your target nest egg.

Example: $60,000/year × 25 = $1,500,000 needed

Employer-Sponsored:

401(k) / 403(b): Pre-tax or Roth, employer match possible

457(b): Government employees, unique early access rules

Individual:

Traditional IRA: Tax-deductible contributions, taxed at withdrawal

Roth IRA: After-tax contributions, tax-free growth and withdrawal

SEP-IRA: Self-employed, high contribution limits

**401(k) to employer match** (free money!)

**Pay off high-interest debt** (>7-8%)

**Max out Roth IRA** ($7,000 in 2024)

**Max out 401(k)** ($23,000 in 2024)

**HSA if available** (triple tax advantage)

**Taxable brokerage** (no limits, flexible access)

Benefits based on highest 35 years of earnings

Full retirement age: 66-67 depending on birth year

Claiming early (62) reduces benefits by ~25%

Delaying to 70 increases benefits by ~8%/year

Calculate your retirement number

Determine your current savings rate

Increase contributions annually (even 1% helps)

Choose appropriate investments for your timeline

Reassess every few years