When it comes to retirement planning there appears to be three age groups.

  1. Over 60. These individuals are relying on the inflation of their stocks and land.  Many are also the last of the employees to have had employers who guaranteed a solid retirement.
  2. Under 40. There are two groups. Those who know to start a plan and those who feels it is the society that will provide for their security when they are old. This group is going to have a rude awakening
  3. 40-60 years of age. This group is caught in the middle. Companies are no longer supporting their retirement. The stock market cannot be counted on for retirement. Many do not have a plan B.

Factors to consider in planning for retirement:

  1. Learn about your employer’s retirement plan and be sure that both the company and you are contributing the maximum.
  2. Set financial goals and stick with them. Review these goals and increase the saving rather than justify the current use of monies that should be saved for the future.
  3. Determine your estimated retirement income needs. Look at your current income and select a percentage that can be set aside. This set aside habit will be the hardest to follow now but will be your best friend at age 65.
  4. Get a copy of your Social Security Earnings report. This fund should be your cushion not your total support.
  5. Determine what sources of income will be available at retirement age.
  6. Where will you live at retirement age and how much extra income will be necessary to enjoy this time in your life?

Is it too late to start saving for retirement?

Obviously, it is never too late but the younger you are, the more time you must accumulate. Einstein said that the greatest invention was the rule of 72, the rule of compounding. This may be hard to believe but the compounding of interest can have amazing results. If we leave monies in place over time, the principal earns interest, the interest earns interest, and for tax-deferred investments, the tax savings earn interest. We have just accomplished triple compounding.

There are many types of retirement holding accounts. A 401K, an individual retirement account and a Roth IRA to name a few. It is important to understand these arrangements and be sure to fund the type of account that will work best for you. For young couples, a Roth IRA is a phenomenal saving tool that will allow great security many years down the road without being concerned about future income tax.

See what age group you are in and maximize the time you have left with the best plan available. We are living so much longer now. It is never too late to create a plan, establish and maintain a habit and gain the security of knowing that there is money in the bank.

Jeff Roth is a partner with David Bacon and Jessica Moon of the firm ROTH and BACON with offices in Port Clinton, Upper Sandusky, Marion and Fort Myers, Fla. All members of the firm are licensed in Ohio and Florida. Mr. Roth’s practice is limited to wealth strategy planning and elder law in both states. Nothing in this article is intended for, nor should be relied upon as individual legal advice. The purpose of this article is to provide information to the public on concepts of law as they pertain to estate and business planning. Roth can be reached at