Viking Magazine - February 2018 - 11

review where your money is going on a
regular basis. If you saved the $5 spent
on an expensive latte every day, you
could save $1,825 in a year.
Keeping Diversified
Once you've maxed out your 401(k)
contribution, consider an IRA. With a
traditional IRA, you can deposit up to
$5,500 annually ($6,500 after age 50)
from your earnings tax free. This can
help put you in a lower tax bracket.
Taxes are then paid when you begin to
make withdrawals beginning at
age 70½.
With a Roth IRA, contributions are
not income-tax deductible up front, but
no taxes are due upon withdrawal. " This
should be popular with younger people
because when they take the money out,
they don't worry about taxation, " says
Carlson. Although many depend on
Social Security, Lee notes that people
shouldn't count on it to be their only
source of income in retirement. Also,
keep in mind that as Americans are living
longer, they need to fund more years in
retirement.
" I don't think a person can plan
enough for retirement, " says Carlson.
" How much you can set aside for savings
depends on your income level, but
money is always there if you examine
your spending habits. "
With all the talks in Congress of
tax reform and spending cuts, experts
say it's a wake-up call to take control
of your own finances. In theory, laws
could change tax-sheltered vehicles,
so it's smart to spread out your risk
over various types of savings and
investments.
Protecting Your Family
As you plan for retirement, be sure to
have short-term savings set aside for the
unexpected.
" Have three to six months of income
in reserve in case of an emergency, "
says Lee. " Sadly, lots of young people
don't have that. " The Transamerica poll
found the median amount of emergency
cash among Gen Xers is just $5,000
- far too small of a cushion to cover
expenses for a few months. This lack
of a safety net can make it a temptation
to raid retirement funds, resulting in
penalties and long-term uncertainty.
For a complimentary consultation with
your Sons of Norway Financial Benefits
Counselor, visit sonsofnorway.com.
Life insurance should also be part
of retirement planning, as it provides
a death benefit to the surviving
spouse and family members to allow
them to maintain their standard of
living. " Protect your family first and
foremost, " advises Lee.
With a permanent policy, owners
can also borrow from the cash value at
a low-interest rate to help supplement
their income in retirement. For those
people who planned for retirement and
bought policies early, Lee says they are
glad they did. " It's gratifying to know
you have done all you can. "
Sons of Norway, 1455 West Lake Street, Minneapolis, MN, offers financial products, but not all products are
available in all states. Products issued by Sons of Norway are available to applicants who meet membership,
insurability and residency requirements.
Baby Boomers
(Born 1946-1964)
Trailblazers of the New Retirement
Seventy-six million Americans are Baby
Boomers. With people living longer
than ever, this generation is redefining
retirement by planning to work until an
older age than previous generations.
66%
plan to work past age 65 or
don't plan to retire at all.
87%
are expecting Social Security to be
a source of their retirement income.
33%
are expecting income from
a traditional pension plan.
Generation X
(Born 1965-1978)
Struggling Retirement Savers
Gen Xers are juggling work, raising
families and looking after aging parents.
Many feel they cannot afford to invest in
their own retirement.
12%
are very confident they
will fully retire comfortably.
77%
are saving for retirement
and they started around age 28.
30%
of retirement plan participants
have taken a loan or early withdrawal.
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Viking Magazine - February 2018

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