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Family Financial Management Practice

(973) 239-7800

Retirement Strategies

When Should You Start Retirement Planning? 

As early as you can, whether your retirement is in 40 years or just a few years away. Your retirement plan should factor in your current needs and future goals, because saving even a small amount each month can make a big difference later.

Starting earlier helps protect you from life’s surprises. Your retirement savings could be impacted by a variety of factors, such as:

  • Taking time off to care for children or aging parents

  • Losing your job

  • Becoming too ill to work as long as you expect

    Family Financial Management Practice will guide you to look ahead and establish a plan to set aside some funds to compensate for expected and unexpected events such as these.

The Advantages of Starting Early

Compare three different investment strategies in the chart below:

  • John waits until age 33 to begin investing $100 per month and continues for 32 years. His total contribution of $38,400 grows to $143,674 by age 65.*

  • Jane begins investing $100 per month at age 22 and continues for 10 years. Her total contribution of $12,000 grows to $174,217 by age 65.*

  • Bill begins investing $100 per month at age 22 and continues investing for 43 years His total contribution of $38,400 grows to $329,524 by age 65.*

    Even though John contributed triple the amount of money, Jane accumulated more with her smaller investment by starting earlier. Of course, Bill saved the most by investing consistently for a longer period of time.

    *Assumes a 7% annual rate of return compounded monthly. This information is for hypothetical purposes only.

    The amount you need to save for retirement depends on when you want to retire and what kind of retirement lifestyle you want. For the average American, life expectancy is increasing, healthcare costs are rising, and pension plans are dwindling. So there’s no easy answer.

    You will want to consider focusing on financial options that provide increasing returns to help meet rising costs because:

  • The more income you make while you’re working, the smaller the percentage of your income will be replaced by Social Security.


  • We can help you determine the right mix of investments depending on your risk tolerance, and provide guidance on a diversification strategy that helps you factor in a mix of taxable and tax-free retirement income sources.

    Our retirement calculator is a great place to start estimating how much you will need to save for retirement. Then, make an appointment with us to determine how to create a plan to accumulate the savings you need.