7 Ways to Reduce Stress When Planning for Retirement

Retirement is a life-changing event and it’s natural to feel some stress about it. But with proper planning and a strategic approach, you can reduce your worry. Here are some practical steps to help you get started.  

Pay Down Debt

One of the best ways to reduce financial stress when saving for retirement is first to pay down any outstanding debt, especially high-interest rate debt, like credit card balances and personal loans. By minimizing debt, you can free up more for your retirement savings. One caveat to this may be to retain low-interest rate debt like mortgages that incur interest rates below what you can currently earn in money market funds.

Determine your Retirement Needs

Understanding your retirement needs is crucial. This includes estimating your future expenses, such as home, healthcare, travel, and charitable giving. It’s important to create a financial plan with your goals in mind so you know how much you need to save and invest to live the way you want.

Maximize your Employer 401(k) Match

Take full advantage of your employer’s 401(k) matching program. By contributing enough to your 401(k) to receive the maximum match offered by your employer, you’re essentially getting free money that can boost your retirement savings.

Contribute to an IRA

In addition to your 401(k), consider contributing to an Individual Retirement Account (IRA). IRAs may offer tax advantages and provide another avenue to save for retirement. There are different types of IRAs, so do your research and consult with a financial advisor on which plan is right for you.

Diversify Your Investments

When building a portfolio, it’s important to diversify your assets. This will help protect your investments in a market downturn. That way all your eggs aren’t in the same basket, and you’re better positioned to manage risk and achieve your retirement goals.  

Consult with a Professional

Don’t hesitate to seek professional advice. Financial advisors, investment advisors, and tax professionals can help you create plans tailored to your unique situation and navigate the complexities of retirement planning to get you on the right track.

For more information on our wealth management services, contact us through our website or call (585) 381-4180.

**Disclaimer**

Armbruster Capital Management’s views, as portrayed in this post, are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Investing involves risks, and the value of your investment will fluctuate over time, and you may gain or lose money.  Past performance does not guarantee future results.