A Millenial’s Guide to Retirement Planning in Charlotte

When you’re in your 20s or even in your 30s, you probably don’t often think so far ahead as to what it would be like for you when you reach your retirement years. With all those things that millennials like to say, like “YOLO” and “Carpe Diem,” it seems like not many pause to start planning for their future. 

Retirement planning can indeed be somewhat intimidating, but with the help of a fee-only certified financial planner, you can get started and be on your way to being financially stable in your retirement years. To help you out, here’s a quick guide to retirement planning:

Questions You Should Be Asking Yourself About Retirement

What Does Retirement Mean to You?

You’d be surprised to know that people have varying ideas of what retirement would look like. For some, it’s spending their days taking cruises and staying at beach houses, while others still want to be working part-time or running their businesses. 

Ask yourself this question because this will be your goal and what will motivate you to start saving. 

When Do You Want to Retire?

Another question that you want to know the answer to is when you think it’s ideal to retire. It might be a specific age or when you’ve reached your target financial goals. Others want to do it as soon as possible!

How Are You Going to Pay for Your Retirement Years?

You need to think about what vehicles will generate income for you in retirement. Aside from setting aside money for it, one of the things you can do is invest in something that will give you passive income, like an investment property. You should also factor in your social security. 

Different Types of Retirement Savings Accounts

You do know that saving for your retirement is crucial, but you’re probably wondering how you’re going to do it. There are a number of ways you can do it. Here are some of them:

The 401(k)

This is a retirement plan that most employers offer. A part of your paycheck is contributed to your 401(k). Ideally, you’d contribute enough to match the contribution your company makes. Some companies encourage employees to sign up for an automatic increase in contribution percentage annually, and that’s definitely something you should consider doing. 

The Traditional Individual Retirement Account (IRA)

This is an account that is specifically set up for use during your retirement. It offers some tax advantages. Anybody below the age of 70 ½ who is earning an income is eligible for the traditional Individual Retirement Account. 

It is worth noting that contributions made to traditional IRAs may still be tax-deductible. Withdrawals are subject to regular income tax. Additionally, an additional federal tax amounting to 10% may also be applied to withdrawals taken before the person reaches the age of 59 ½. 

The Roth IRA

It’s almost the same as the traditional one but with different requirements for eligibility and tax advantages. You are eligible for this, no matter how old you are, as long as you have a modified adjusted gross income for this year (2024) that is not equal to or more than $146,000 for single tax filers and $230,000 for joint tax filers. 

Any earnings are tax-free if you withdraw at or after you reach 59 ½ years old and the account has been open for at least five years. The contributions are not tax-deductible. 

The Rollover IRA

When you leave your current company, and you need to transfer your 401(k), you can choose to roll it over into an IRA. By doing this, you can keep your taxes deferred until your retirement and prevent paying early withdrawal penalties. 

Should You Invest?

Another option you have is to go the investment route. While you are still working, you can invest in bonds, stocks, investment properties, and others. By doing so, you can actually make your money work for you while at the same time increase its earning potential. 


Hopefully, this gives you an idea of how you can start your retirement financial planning. Of course, even with this information, you could still have a lot of questions, and that’s perfectly fine. A certified fee-only financial planner can guide you through the entire process of planning and make sure that you’re on the right track. 

Calamita Wealth Management can provide you with the services of a certified financial planner in Charlotte, NC. We can help you with your retirement planning and other financial planning needs. Contact us today to know more!


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