Seniors will comprise more than 20% of United States residents by 2030.
That’s up from 15% in 2020, per that year’s Census data. And by 2034, adults age 65 and over will outnumber children.
Retirement age figures are proportionally similar in the state of Maryland and its most populous county, Montgomery, which makes it imperative for those in the local workforce to plan for retirement savings and put away the maximum amount possible – admittedly easier said than done.
A key part of any retirement savings plan is embracing stages of workplace life, and (hopefully) increasing earnings that come with advancing through a career.
Many retirement savings decisions stem from a planned retirement age, says Clark Kendall, president and CEO of Rockville-based Kendall Capital.
“You need a lot more money to retire at 60 versus 70. You don’t get covered under Medicare for another five years. You don’t get full retirement benefits until you’re 67,” says Kendall, who founded the firm in 2005 and has more than 30 years of investment management and wealth management experience.
At the same time, adds Kendall, it’s important to live well while simultaneously exercising financial prudence and restraint ahead of retirement.
“The couple who dies with $10 million, never goes out, never goes on vacation – that’s not healthy,” he says.
As for allocating savings, each person and family’s case is different. But generally, it’s good to have a diversified portfolio, in some combination of “real estate, stocks, bonds and cash,” Kendall says.
Stocks in particular have seen a meteoric rise in the past few years. But how much exposure any investor has in the market, particularly with potential retirement savings, can depend on their appetite for financial risk, Kendall says.
The retirement picture has been clouded by economic uncertainty due to inflation and other factors. That’s reflected in rising values of gold, traditionally a fear index of sorts that grows in price amid geopolitical tumult. Gold prices reached a record on Oct. 7, with the precious metal topping $4,000 an ounce. Analysts say investors are turning to gold amid unease about the U.S. economy and political instability.
Kendall, though, is cautious about such investments.
“Gold is basically a raw material. Besides making jewelry and some chips, you don’t get an interest or dividend payment from it,” he says. Similarly, he’s not a big fan of cryptocurrency.
“I’d rather own a jewelry store or chip manufacturer,” he says.
Though times can seem tough for people trying to build retirement savings, it’s possible no matter one’s income level.
“What I like to do with people is paint a picture of what your life is going to look like in ten years. And then let’s work together to figure out how best to contribute to retirement accounts and other moves,” Kendall says.
“It’s great to have satisfaction when you hear from clients, ‘We could buy a beach house and spend great family time there,’ or ‘I could walk my daughter down the aisle,’” he adds.
