Congratulations on taking the first step toward preparing for retirement. No matter your age or financial situation, it’s never too early to begin a personal retirement plan.
With average life expectancies increasing, it’s realistic to assume that you’ll live several decades after your prime earning years. Meanwhile, you can no longer count on the two traditional sources of retirement income. Social Security benefits account for just 38 percent of a typical retiree’s income, according to the U.S. Social Security Administration. And, pensions, once a staple of retirement funds, continue to be replaced with defined contribution plans, such as 401(k) plans funded primarily by employees.
Fortunately, as a young investor you have a distinct advantage: time. Over many years, the power of compound growth can turn even modest amounts into sizeable ones. And while the thought of planning and saving for retirement may seem overwhelming, you don’t have to do it alone. SunTrust’s team of trusted and experienced advisors can help you define your retirement goals and map out a strategy that’s right for you. We’ll work with you to come up with a realistic plan for saving for tomorrow while balancing your financial obligations today.
Five steps to getting started
- Define your goals: The amount of money you’ll need in retirement will depend on a number of factors and may change over time. Still, it’s helpful to save with a goal in mind. Based on our experience of working with many clients, a SunTrust Investment Services, Inc. advisor can help you determine roughly how much you’ll need in your golden years and how much you need to save in order to reach your goals.
- Weigh your options: To get the most from your retirement, you’ll want to maximize the tax-advantaged savings options available to you. A SunTrust advisor can also help you understand the benefits of various individual retirement options, such as a Roth IRA or a Traditional IRA.
- Determine asset allocation: Over the long term, your asset allocation can have a bigger impact on your overall returns than the individual stocks, bonds or mutual funds you choose.1 Asset allocation is how you divvy your investment dollars between stocks, bonds and other types of investments. A SunTrust Investment Services advisor will consider your age, risk tolerance and other factors to help you determine the best allocation strategy for you.
- Choose your investments: Once your strategy is in place, a SunTrust advisor can help you identify individual investments suited to carry out your plan. For new investors, it generally makes sense to invest primarily in a range of diversified mutual funds, which are portfolios of stocks, bonds and other kinds of assets. Over time, however, you may want to add individual stocks, bonds and other securities to the mix. The best news is that, unlike some financial institutions that limit you to their products, SunTrust Investment Services can offer you investing solutions from some of the best product providers the industry has to offer.
- Prioritize and save: If you’re like most people, you’re juggling multiple savings goals, such as your child’s tuition or a down payment on a home, at one time. A SunTrust advisor can help you come up with a realistic strategy for keeping your retirement plans on track without neglecting your short-term goals.
Call SunTrust at 800.786.8787 to speak with an advisor about laying the foundation for a solid retirement. Or click here to schedule a call or get the answers you need.