Northwest Financial LLC

LONG-TERM GOALS

The following information is from msmoney.com.

For some of us, retirement may seem a long way off. But consider this: the steps you take now will have an enormous influence on the quality of your life 10, 20, 30 or 40 years from now. Whatever your age, the time to start planning your retirement is now. All it takes is five simple steps.

STEP 1: Establish clear, simple, and memorable goals.
Ask yourself, "When do I want to retire?" and "How much money will I need to retire?"

STEP 2: Put yourself on track to meet your goals.
When you retire, you'll want to have enough money to enjoy your free time and maintain your current lifestyle. The sooner you start putting money away, the more time it has to grow. Start a monthly transfer from your checking account to your investment account.

STEP 3: Make regular contributions to your company retirement plan.
If your employer offers a 401(k) or 403(b) plan, participate to the maximum. Your contributions are made with tax-deferred dollars so they may reduce your taxable salary, and both contributions and earnings can grow tax-deferred until they're withdrawn. If your employer matches your contribution, you're throwing away free money if you don't participate.

STEP 4: Contribute regularly to an IRA.
If you're not covered by a company retirement plan, make regular contributions to an IRA. Regardless of the type of IRA you qualify for - Traditional or Roth - your savings will grow tax-deferred. And even if you're contributing to a plan at work, consider putting some additional money in an IRA.

STEP 5: Review your goals and track your progress annually.
Read your retirement plan statements and continue to monitor your spending. Are you on target? Remember, you're involved in a marathon, not a sprint: day-to-day fluctuations in the stock market will have little bearing on your long-term goals.

A Rule of Thumb
By the time you're ready to retire, you probably won't have the same expenses you do now. Some costs will decrease while others will increase. Many financial representatives estimate that you may need as much as 60% to 80% of your current annual after-tax income to live on through your retirement to maintain your current lifestyle. Think about how you can trim expenses now in order to save more for the future. The sooner you start, the less painful it should be.

Contact us today to learn more about meeting your long-term financial goals.

Access to securities and insurance products provided by Northwest Financial Group, a registered broker/dealer, member FINRA/SIPC. Northwest Financial Group is a subsidiary of Northwest Financial LLC, a wholly owned subsidiary of Northwest Federal Credit Union. Securities and insurance products are offered through LPL Financial and its affiliates, member FINRA/SIPC. LPL Financial has contracted Northwest Financial Group to refer securities and insurance business to LPL Financial. Northwest Financial LLC and Northwest Federal Credit Union are not registered broker/dealers and are not affiliated with LPL Financial. Not NCUA insured. No credit union guarantee. May lose value.

Loan protection and tax preparation services are not affiliated or endorsed by LPL Financial.

The LPL representatives associated with this site may only discuss and transact securities business to residents of the following states: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NC, NH, NJ, NM, NV, NY, OH, OK, OR, PA, SC, TN, TX, UT, VT, VA, WA, WV, WI.