The Ultimate Guide to Retirement Planning

Around 4.1 million Americans are expected to retire every year through 2027. Many of these are Baby Boomers who are anxiously awaiting a life without going to work every day. But for those of us who aren’t there yet, how are we planning for retirement?

Building a secure retirement often requires years of consistent saving, investing, and financial planning. Saving for retirement starts with understanding investing basics, budgeting to save for retirement with every paycheck, and reaching our saving goals. When we get closer to retirement, we can create a retirement income, create a will, and enjoy life without a 9-5 until we can’t anymore. In this guide, we walk through the steps of saving and planning now so you can make the most of your retirement.

Investing 101

Many people assume investing is only for the wealthy, but that’s simply not true. Investing a way to grow your money over time, even if you start with a few hundred dollars. Every retirement investment strategy will look different based on individual goals, income, timeline, and risk tolerance.

Here are the basics you need to understand about investing so you can make the best decisions to save for your retirement.

Investing Basics

Investing is the process of putting money into assets such as stocks, bonds, mutual funds, and retirement accounts with the goal of growing wealth over time.

Different Types of Investment Accounts

Investments are risky since there usually isn’t a guarantee of return. Some investments are riskier than others, so you may grow your savings or lose a large amount. Depending on your goals, comfort of risk, and tax implications, a variety of investment accounts may fit your needs.

Stocks and Bonds

When you buy a stock, you buy a small portion of ownership of the business. Your growth or decline depends on how the business is doing. However, the performance of stocks can change with the stock market.

When you buy a bond, you actually loan money to a company in exchange for your money back with interest. Bonds are generally considered less volatile than stocks and may provide a predictable stream of interest income.

IRAs

IRAs, or Individual Retirement Accounts, are retirement accounts that can hold a variety of investments including stocks, bonds, annuities, mutual funds, and certificates of deposit. Investments in traditional IRAs are tax-deferred, while investments in Roth IRAs are funded by after-tax dollars. Parents can also open Coverdell Education IRAs to save for their kid’s education with tax benefits.

Mutual Funds

Mutual funds are investment portfolios made up of money from many different investors. These funds can include stocks, bonds, and other types of investments. When you invest in a mutual fund, you purchase shares of the portfolio and may earn income and investment growth over time. Mutual funds are popular with beginners because a professional manager oversees the fund’s investments.

401(k)s and 403(b)s

Retirement plans like 401(k)s and 403(b)s are typically offered by employers. Money can easily be deposited into these accounts regularly with automatic transfers before your direct deposit.

The Value of Investing

Investing doesn’t have to feel intimidating. No matter what type of investment you choose, the goal is to set aside money that you don’t plan to touch until you retire. While investing always comes with some level of risk, many people reduce that risk by diversifying their portfolios. This means you spread your money across different types of accounts and investments instead of relying on just one. Over time, many investments have the potential to grow through compound growth, helping your money build year after year. By retirement, your investments may be worth significantly more than the total amount you originally contributed throughout your career.

Prepare for Retirement Early

By saving for retirement early in your career, you give your money more time to grow. Since you’re giving yourself more time to save, you can also contribute less toward your retirement while still meeting your goals. That’ll give you more money to use now and more money through compound growth and years of saving.

Here are tips to starting to save for your retirement in your 20s and 30s.

Talk to Your Employer

If your employer offers a 401(k), it’s a smart way to save for retirement, especially if they match your contributions. A 401(k) match is essentially free money added to your retirement savings when you contribute part of your paycheck.

If you don’t have access to a 401(k), you can save for your retirement independently through an IRA or other long-term investment accounts. Using multiple retirement savings tools can help you build a stronger financial future.

Create a Budget

Budgeting does more than help you manage everyday expenses; it also helps you prepare for retirement. A strong budget creates room to consistently save for the future, whether through your employer’s retirement plan, an IRA, or additional savings options like CDs. If retirement contributions are automatically deducted from your paycheck, you can build your budget around your take-home pay while still growing your retirement savings. Over time, budgeting also helps you create a sustainable lifestyle that may be easier to maintain during retirement.

With automatic transfers, you can put money into your IRA with Alltru and the rest in a High Yield Online Savings account. That way, the money you may need in the near future still has a chance to grow.

Switch Jobs Wisely

While a new job may be attractive because of a larger paycheck, your retirement funds may take a hit. If you had a 401(k) with your employer, roll the funds into an IRA so they can keep growing. That way, you won’t get penalized for cashing out your money too early and have to pay extra fees. Be mindful that if your employer was matching your contribution, you won’t get to take all of what they contributed if the funds weren’t vested. Before changing jobs, review your vesting schedule to understand how much of your employer’s contributions you may be able to keep if you leave.

Catch Up Your Savings

If you feel behind on retirement savings, remember that time can work in your favor. The earlier you start, the more opportunity your savings have to grow. A good first step is contributing enough to your employer’s retirement plan to receive the full company match. From there, create a budget can help you make additional room for savings and diversify your retirement accounts. Working with a representative at Alltru can also help you choose the right savings options for your goals. Taking steps now can help you build a more comfortable retirement in the future.

Retirement Savings Goals By Age

Saving for retirement is a wise decision, no matter when you start. However, when you start will influence how much you need to save for retirement.

A good rule of thumb is to save 15% of your pre-tax income each paycheck for your retirement. There is some nuance to this. Individual savings goals vary based on income, lifestyle expectations, retirement age, and other personal factors.

So how much do you need to save for your retirement?

Retirement Savings By Age

Below is a chart that shows how much of your annual salary you should have saved for retirement by age.

Based on the Survey of Consumers Finances from the Federal Reserve, the average young American likely doesn’t have enough saved for retirement.

The growth over each decade shows that it is possible to get caught up saving for your retirement. For example, a 30-year-old with an annual salary of $49,130 needs $147,390 saved for retirement, not $141,520. However, the same person would need $294,780 saved by age 50, which is under the average of $313,220!

If you’re behind, here is how you can catch up with your retirement savings.

Catching Up Under Age 50

If you are under the age of 50, you have ample time to catch up your retirement savings. There are three main ways you can catch up your savings.

Use Your Employer’s Match

Many employers offer matching contributions through workplace retirement plans. Some companies match contributions dollar-for-dollar up to a certain percentage, while others contribute a smaller percentage. Review your employer’s plan details and contribute enough to receive the full match whenever possible. This helps you get caught up without feeling the whole burden of saving.

Contribute Extra

Employees who have a 401(k), 403(b), 457 plan, or a federal government Thrift Savings Plan can contribute up to $24,500 in one calendar year. If you budget for it, you’re allowed to quickly boost your savings. Your employer’s match doesn’t count toward this total, so you have even more room to catch up your savings quickly.

Change the Percentage

While 15% is the rule of thumb of how much to save for your retirement, this number will need to increase if you are behind on your savings goals. If you start contributing 15% at age 24, you can have your annual salary saved for retirement by age 30. However, if you’re behind, run some numbers to see how much you need to increase your savings to meet your goal. Every increase helps!

Catching Up Over Age 50

If you are over the age of 50, you only have a few years to boost your retirement savings. There are a few ways you can make this possible.

Change the Percentage

No matter how much time you have until you retire, you need to increase the percentage of your income that you save for retirement if you are behind. Compound growth has less time to be effective since you’ll start withdrawing money sooner.

Take Advantage of Catch Up Benefits

Catch up contributions allow employees age 50 and over to contribute beyond the $24,500 limit to qualifying retirement plans. For tax purposes, you can continue making contributions to a Traditional or Roth IRA for the prior year up until the tax filing deadline in the current year.

Get Expert Help

It can be overwhelming and discouraging to learn that you aren’t saving enough for retirement, especially when money is tight right now. At Alltru, we offer free appointments with trained financial counselors to help you meet your financial goals. You don’t have to be a member to get an appointment, and there’s no obligation. As a member though, you can open an IRA to start saving for your retirement. Let’s save for your future together.

Beginner Investing Mistakes

It’s easy to make mistakes with your investing and not even know it. Understanding the basics of investing, which we covered, and learning common mistakes can help you save for your retirement wisely.

Here are the top investment mistakes to avoid.

Not Saving Enough

Saving for immediate goals can throw off your retirement savings. The more you save early, the more time your money has to grow. Create a budget so you can save 15% of your pre-tax income for retirement. Then pay your taxes and live off of the rest of your income. Since you’re starting to save early, you should be able to meet your annual salary goal by age 30, but always check your income and goals to stay on track.

If your employer doesn’t have a plan with a match, open an IRA at Alltru. You can set up automatic transfers to your accounts so you don’t have to remember to contribute to your retirement with every paycheck.

Not Investing in Accounts

Some investors mistakenly assume their money automatically grows once it is deposited into an IRA. In many cases, you must still choose investments within the account before your money begins working toward your retirement goals.

An IRA is just an account. You still have to choose how the money is invested. If you’re unsure how to set it up, talk to your financial planner to make sure your money is actually working for you.

Not Getting Your Employer’s Full Match

Many employers offer a retirement match. You just have to contribute to opt in. However, some employees miss out simply because they don’t realize this benefit exists. Employer contributions may also be subject to vesting. This means that you lose their investment if you leave the company too soon.

Check with your HR team to understand your company’s match program. If your employer matches up to 5%, contributing at least that amount ensures you receive the full benefit.

Not Investing in the Right Accounts

The U.S. retirement system gives your money the chance to grow over time when invested in the right accounts. However, less than half of Americans have a dedicated retirement savings account. While savings accounts and CDs can earn interest, they’re generally better for short-term goals than long-term retirement growth.

If you’re setting up a retirement plan now, consider contributing more than just what you need for your employer’s match. You may also be able to make contributions for the prior tax year up until Tax Day, giving you an added tax advantage and a stronger start toward retirement savings if you’re just starting.

Not Letting Your Savings Mature

Retirement savings aren’t supposed to be cashed out until at least you’re age 59 ½. If you withdraw money before this age, you’ll have to pay an additional tax due to your “premature” or “early” distribution.

However, there are a few exceptions that allow you to pull from your retirement savings without paying the extra tax. This includes birth and adoption expenses, disability, education costs, first-time home buying fees, and more.

Don’t Make These Mistakes

This list may feel complex, but it highlights common mistakes people make without realizing the long-term impact. If you need help adjusting your retirement budget or are considering withdrawing savings, ask for help. Our financial planners can help you make informed decisions and take the next right step for your money.

Retirement Expenses

Saving for retirement is only the beginning of planning for retirement. As you get closer to retirement, it’s important to understand the expenses you’ll still need to manage and plan for how your budget will shift in this new stage of life.

Here’s an overview of typical retirement expenses.

Debt Payments

Entering retirement with minimal debt can make your savings go further. Paying off your mortgage and other loans before you retire can significantly improve your financial flexibility since you’ll likely be relying on a fixed amount of savings. Aim to eliminate high-interest debt like credit cards, Personal Loans, and Auto Loans. The less you owe, the more of your money can go toward supporting your lifestyle instead of interest payments in retirement.

Housing

Even if your mortgage is paid off, you’ll still have ongoing housing costs in retirement. Property taxes, homeowners insurance, utilities, and HOA fees can continue and may even rise over time as property values change.

Some retirees choose to downsize to reduce expenses. Ideally, you can use the proceeds from selling your home to fund a smaller, more manageable one. You may opt to move to a retirement community or care facility, which can be costly but may be partially offset by selling their current home.

Medical Expenses

It’s not uncommon to visit doctors more frequently as you age. You’ll have copays, prescriptions, and other bills to pay for. You may also have to pay for Part D drug coverage and Medigap or Medicare Advantage costs. In addition, you may have additional and ongoing dental, vision, and hearing costs.

Insurance

Retirement doesn’t eliminate insurance costs. You’ll still likely pay for coverage such as home, auto, and health insurance. Health insurance in particular may increase with age or existing medical needs. Once you turn 65, you may qualify for Medicare, which can help reduce some of your healthcare expenses.

Other Living and Entertainment Expenses

When you retire, the costs of your daily living expenses may be similar to what they are now. This can include groceries, dining out, home maintenance, transportation, clothing and more.

Retirement also comes with time for more hobbies. Whether you’re trying something new or perfecting your craft, you may spend more money on entertainment simply because you have more time.

Buffer

In retirement, it’s important not to plan on spending every dollar in your budget. Keeping a savings cushion for unexpected expenses or emergencies helps you stay financially stable and avoid disrupting your long-term plans.

Pass It Along

Most older Americans plan to leave some form of inheritance to the next generation. While it’s not required, many choose to save what they don’t need to spend so their loved ones can benefit.

This is another reason to reduce your debt as much as you can going into retirement. It also allows you to enjoy retirement without ongoing payments like a mortgage, car loan, or credit card bills.

Create a Retirement Income Plan

Retirement is a milestone many look forward to after years of hard work. To make the most of your savings, you need a retirement income plan that helps you strategically draw from your assets to support your lifestyle.

Here’s how to create one.

Planning Your Retirement Age

According to SoFi, the average retirement age in the U.S. is 62, which is also when most people become eligible for Social Security. However, delaying retirement can increase your monthly benefit since you’ll be eligible for a larger payout.

Many financial professionals estimate retirees may need 70% to 80% of their pre-retirement income, assuming reduced debt and no ongoing retirement contributions, to maintain a similar lifestyle. Depending on when you choose to retire, your savings will need to cover more expenses. This is where a retirement income plan becomes helpful.

Understanding Your Income

In retirement planning, “income” refers to the money you receive from sources like retirement savings and Social Security, even though it’s different from a paycheck. This income can come from multiple accounts and is generally grouped into two categories: guaranteed income and non-guaranteed income.

Common sources of guaranteed income include Social Security benefits, pensions, and certain annuities. This income is a great source for coving your essential bills.

Non-guaranteed income is tied to the market and is influenced by your savings. This includes 401(k) and 403(b) funds, IRAs, stocks, mutual funds, and other brokerage accounts. If you choose to work a part-time job during retirement, this is also non-guaranteed income since you can stop at any time.

Plan Your Income

With so many account types and tax rules, it can be difficult to know when and how much to withdraw from each source. A certified financial planner can help you build a retirement income strategy and coordinate withdrawals from both guaranteed and non-guaranteed sources. That way, you can make the most of both types of income and avoid feeling stressed.

Create a Budget

Finally, you should create a budget based on your retirement income plan. This budget should cover your basic needs, then some non-essentials, and finally some buffer in case unexpected situations arise.

If you have any outstanding debt, work with your financial planner to pay off this debt as quickly and safely as possible. High interest rates can quickly eat into your retirement savings.

Stretch Your Retirement Income

If you’ve reached retirement with savings in place, the next step is making that money last. Many retirees worry about outliving their savings or not knowing how to balance Social Security with withdrawals from retirement accounts like IRAs.

Now that you have a basic understanding of your retirement income plan, you can find ways to make that money go farther. Here are four simple steps to get started.

Consider Annuities

Even after you enter retirement, you can keep investing in low-risk options like annuities. Fixed annuities may provide predictable income and protection from market fluctuations, subject to the terms of the contract and the claims-paying ability of the insurance company. You can also mix immediate and deferred annuities to spread your payouts while the rest continues to grow interest. Talk to a financial planner to make these switches in your investment portfolio.

After retirement, holding onto what money you have becomes even more important. This means that for most people, this isn’t the time to indulge in high-risk investments. Make an appointment to go over your current portfolio and consider moving any funds wrapped up in risky investments to something safer such as fixed annuities.

Reduce Spending

Good financial habits matter even more in retirement. Take time to review your expenses and identify areas where you can cut back on costs that are no longer essential. This may include downsizing your home, moving to a more affordable area, or reducing services you don’t need.

Start by reviewing your spending from the past year and building a budget around it. Look for opportunities to reduce expenses so you can preserve more of your retirement savings.

Find the Right Credit Card

Review the benefits your credit cards offer and consider closing or replacing any that no longer match your spending habits. For example, if you don’t travel often, a travel rewards card may not be as valuable as a cash-back option. Compare your current cards with credit union options to see if you can secure better rates or more useful benefits.

If you’re carrying a balance, a balance transfer could also help you lower interest costs. Alltru’s Rewards Credit Card gives you flexibility to earn and redeem rewards in a way that fits your lifestyle and offers a low interest rate for balance transfers.

Take Advantage of Discounts

Since you no longer have a 9-5, you can take advantage of off-peak entertainment. This can include discounted vacation rates, matinee showings, and lunch menu pricing. Don’t be afraid to use any senior discounts either.

Stretch Your Retirement Income

Take a serious look at your life and review any changes you can make from your working life. Sure, once you retire, you won’t need a professional wardrobe, and you might not go out for lunch as often. But then again, you might. In fact, the more time you have on your hands, the more likely you are to fill that time with activities that increase spending. So, budgeting properly and being savvy with your newly limited income can help provide additional confidence and financial security.

Downsizing in Retirement

Around 30% of retirees downsize their home. Downsizing during retirement is a large change. Before deciding whether or not to downsize, consider these effects of your decision.

Have Less House to Upkeep

With more time on your hands, you can spend it enjoying life in your home instead of keeping it maintained with a smaller house. A smaller home means less space to clean and fix, which make it easier to maintain.

Navigate a Simple Layout

Some would rather have a ranch style layout than deal with stairs as they get older. You can remove these barriers in your home and look for features that better support changing mobility, such as wider walkways, walk-in showers with seating, and other accessibility options.

Get Additional Help

By downsizing to a smaller home, you can choose living arrangements that make daily life easier and have closer access to support. This might include a condo or townhouse with an HOA that handles yard work and snow removal to eliminate physically demanding chores. You could also consider a retirement community with on-call medical staff for added peace of mind or move closer to family for more frequent visits and easier access to help when needed.

Reduce Housing Costs

Downsizing in retirement can help lower your monthly housing costs. If you still have a mortgage, moving to a smaller home may reduce your payment. You may also benefit from lower property taxes, HOA fees, and utility bills since a smaller home is generally less expensive to heat or cool. In some cases, reduced square footage can also lead to lower homeowners insurance costs.

Make New Memories

If you’ve been in your current home for a few decades, you may have raised your family in this sentimental spot. While your home hosts many memories, a new home in a new place for even more. You’ll have to work around a different layout, but it may be worth your safety.

Decide to Move or Stay

Selling a home and finding a new one can take time and effort. There isn’t a one-size-fits-all answer to whether you should stay or downsize either. Your decision will depend on factors like your health, family needs, finances, and overall lifestyle. Focus on what works best for your situation and aim to enjoy the retirement you’ve worked hard for.

Protect Your Retirement from Scams

Scammers often target retirees because they know many older adults have built up savings over time. Protecting your retirement income starts with understanding the tactics fraudsters commonly use to gain trust and steal money.

The more familiar you are with these scams, the easier it becomes to recognize warning signs and protect your retirement. Here are some common tactics scammers use to target retirees and how to avoid them.

Government Imposter Scams

Scammers know that many retirees rely on Social Security and Medicare benefits, so they often pretend to represent these agencies. They may ask you to “verify” personal information or threaten to suspend benefits to create panic. Since you’re emotionally vulnerable in moments of panic, they get you to share sensitive information. This can lead to identity theft, stolen benefits, and additional financial loss.

Be cautious of unexpected messages asking for personal or financial information. Verify any communication directly through the agency before responding.

Romance Scams

Romance scams can target anyone, but older adults often experience the largest financial losses. Scammers build trust online, avoid meeting in person, and eventually ask for money or sensitive financial information.

Before sending money or sharing account details, take time to look into the person’s identity and involve trusted friends or family members for a second opinion. Staying aware of common romance scam tactics can help protect your finances, personal information, and relationships.

Caregiver Scams

Unfortunately, financial scams can also come from caregivers, including relatives or hired help. A caregiver with access to your finances may misuse funds, steal cash or credit card information, or make unauthorized transactions that can go unnoticed for months.

To help protect yourself, work with reputable caregiver agencies when possible. Regularly review your bank account and credit card activity, and involve trusted family members in checking on both your care and finances. We also watch for suspicious account activity and will let you know of any red flags.

Social Media Scams

Social media makes it easy to stay in touch with loved ones, but scammers also use these platforms to impersonate friends, family members, or businesses. Fraudsters may send messages asking for money or personal information, pretending to be a loved one who needs help.

Before responding, verify the account is legitimate and avoid sharing financial or sensitive information through social media messages. If a company contacts you online, visit its official website directly to confirm the offer before taking action.

Investment Scams

Scammers know that you’re dependent on your retirement savings to support your everyday life. Who wouldn’t want to keep their retirement savings growing even during retirement? Scammers know this is a real desire, so they may impersonate a financial planner. They’ll offer suggestions for investments or even to invest for you if you pay a fee or send them your account information. Be especially cautious of anyone promising guaranteed returns or pressuring you to act immediately.

Protect yourself from investment scams by researching any company you want to use for help investing. It’s a wise idea to avoid those that solicit you online. Remember that investing comes with risk, so a promise of growth is a red flag.

Protect Your Money from Retirement Scams

When banking with Alltru, your money is kept safe. Our Value Checking account also offers additional security features and identity theft recovery assistance, including identity monitoring and recovery assistance.

Understanding Wills and Probate

During your retirement, you’ll need to create a will so your assets and final wishes are handled as you like. When someone passes away, their estate goes through probate. By having an up-to-date will, the court can divide their estate according to the document.

Here are some common misconceptions about wills and probate.

The State Gets Everything if Someone Dies Without a Will

Fortunately, this isn’t true. In most states, your spouse and children are entitled to your estate if you don’t have a will. Creating a valid will can help ensure your wishes are carried out and may simplify the probate process for your loved ones. Assets will only go to the state if no relatives can be found. If you don’t have close family, you can leave your assets to charitable causes instead.

It Takes Years to Probate an Estate

Most estates are resolved without taking years. The main delay is typically the creditor claim period required by state law, which allows time for creditors to submit any outstanding claims. This window usually begins once the probate notice is published. In Missouri, this period is just over six months.

There Won’t Be Assets Left Because Probate is So Expensive

There are many misconceptions about how expensive probate can be, but most estates don’t end up losing everything to court or attorney fees. The costs of probate are often manageable. Lawyer fees typically aren’t fixed, so prices may fluctuate. The goal of probate is to transfer assets properly, not spend it all in legal fees. Make sure you find an affordable attorney to help.

My Spouse is Entitled to My Estate

Some couples choose to not leave each other a lot in assets. This is common in blended families or if they managed finances independently. Since your spouse will be entitled to the estate if you pass without a will, make sure you take the time to each write wills so your assets are divided as you see fit.

The Oldest Child is the Executor of the Parents’ Estate

This is a common idea since many older siblings have been handed more responsibility over time. The executor of your will doesn’t have to be your oldest child. As long as you name an executor that the court doesn’t see unfit, they will be the executor of your estate.

What Happens to Debt When You Die?

Eventually, loved ones pass away, and their estate goes through probate. There’s a lot of misinformation about how probate works, especially when loans are involved. Learn the basics of probate so you and your family can handle the process well while grieving.

Probate 101

Probate is the process of verifying and executing the wishes of someone’s will after they pass away. It is required by court, regardless of whether someone had a will or not. During probate, the executor is responsible to acting upon the wishes described in the will. If no executor was named in the will, the court will order an administrator to handle the process.

Pay Off Debt with Your Estate

During probate, the deceased person’s assets and debts are reviewed. Assets can include bank accounts, real estate, vehicles, some investments, and personal property. Outstanding debts such as loans, credit cards, medical bills, and taxes are paid from the estate. Once the debt is paid, the remaining assets are distributed to beneficiaries.

If there is no will, the remaining assets are distributed according to state law, which is usually the living spouse or children.

Fortunately, retirement accounts including IRAs, 401(k)s, and 403(b), and life insurance usually don’t go through probate as they’re considered non-probate assets. If they name a beneficiary, the funds can skip probate and go directly to the recipient.

More Debt than Assets

In some cases, a person’s debts may exceed the value of their assets. When this happens, the assets are used to pay as much of the debt as possible. If there isn’t enough money to cover all debts, beneficiaries typically are not personally responsible for the remaining balance unless they were a co-signer or otherwise legally tied to the debt.

Pass On Loans to Others

In some situations, debt can become another person’s responsibility after someone dies. This happens when there is a cosigner on the loan. Cosigners are legally responsible for the debt and will be required to continue making payments if the original borrower can no longer pay.

Avoid Passing Debt to Others

There are three major ways you can avoid passing debt to your loved ones. First, limit cosigning on loans. If some was the sole signer on a loan that they were still paying for when they passed, their assets would pay off the balance. Borrowers can also sign up for Debt Protection with Life Plus from Alltru to reduce the burden of a loan. Many also pay for life insurance plans so their surviving family can use the money to pay for any debt they are still responsible for.

Many people use life insurance as part of their estate planning strategy to help surviving family members manage outstanding financial obligations.

Protect Your Family’s Future

While probate can take time, it helps ensure a person’s estate, debts, and final wishes are handled properly. To help preserve more assets for your loved ones, it’s important to manage debt carefully and understand who may be responsible for it after death.

If you share debt with a cosigner, tools like debt protection products or life insurance may help cover remaining balances. It’s also important to remember that many retirement accounts pass directly to named beneficiaries instead of going through probate, which can also be used to pay off outstanding shared debt.

Start Planning for Retirement

By managing your money well while you are early in your career, you can slowly and strategically save for your retirement. That way, you can enjoy a relaxing retirement without financial stress.

If you need help investing or creating a retirement income plan, talk to a certified financial planner for help.