Saving for Retirement
Whether you're just getting started, already retired or somewhere in between, Azzad can help you build a plan to fit your needs. We make retirement planning easy.
Get Started
Sound retirement planning is critical. What you do today will determine what kind of lifestyle you live tomorrow. Ideally, you'll want to start saving young (in your 20s) so you can put the power of time and compounding on your side. See how time and compounding can affect your savings.
First, you'll need to determine your retirement income needs. Most experts recommend 60 to 70 percent of your pre-retirement income, but that's only a general estimate. Use your current expenses to estimate your annual retirement expenses. Our retirement planning calculator may help you project future expenses better.
Next, make an inventory of your estimated future assets and income. These may include: social security, a retirement plan at work, and other sources. The gap between your future needs and your assets will need to come from personal savings.
Once you know about how much money you'll need, your next goal is to save, save, save.
Maximize your tax deferred retirement savings options
You'll want to carefully consider your tax advantaged retirement choices. Employer sponsored retirement plans are powerful savings tools. Plus, you may be able to save in a combination of various IRA plans. It all depends on your situation. One thing is clear: saving in a tax advantaged retirement plan can be a powerful way to build your retirement nest.
Your Azzad adviser can help you decide which plans are right for you.
Understand your investment options
Choosing which investments to fund your IRA or 401(K) will determine how fast your retirement dollars grow. We can help you build a well-diversified account that's based on your risk tolerance, age and goals.
If you're nearing retirement or already retired, we'll help you develop an investment strategy that's right for you. For retirees- we'll manage your withdrawals to help make your money last longer. We'll help you create a plan so you can feel confident about living the retirement you desire.
Plus, your retirement savings will be built on companies you can respect. These are companies that are in line with your ethical investment philosophy. It's a smarter, more ethical way to invest for your golden years.
Stay on track with regular contributions
A successful plan uses regular investing to take advantage of market declines. You can do this by setting up an electronic funds transfer (EFT) in your account. Just tell us how much money you'd like deducted from your bank account and how often. Your money will be automatically deducted from your bank and invested in your account. Start an EFT in your account today.
This powerful savings tool helps you dollar cost average. Although it can't guarantee a profit, dollar cost averaging may help you reduce your risk and potentially increase your long-term returns.
Call us at 888-862-9923 to speak to an adviser who can help you create a plan you'll feel confident about.
Dollar cost averaging is an investment strategy in which you invest the same amount of money each month, quarter or year. Since you're investing the same amount of money each time, dollar cost averaging automatically buys more shares of a security when the share price is low and fewer shares when the price is high. Over time, this strategy helps lower your average price per share.
Here's an example:
Sue invests $300 a month in her IRA account. As the following hypothetical illustration shows, she automatically buys more shares when prices are low and fewer shares when prices are high:
Average market price per share:
$30+$10+$20+$15+$25
_____________________ = $20
5 purchases
Sue's average cost per share:
$1,500 total investment
___________________ = $17.24
87 shares purchased
Keep in mind that dollar cost averaging can't protect you from a loss, especially in a declining market, nor can it guarantee that your investment will realize a gain. This strategy works best for long-term goals such as saving for retirement or a child's college education.
Want to set up dollar cost averaging in your account? Download application.
The below chart assumes an 8% return, 27% tax rate with a monthly investment of $250. As you see, saving through a tax deferred vehicle can ultimately save you more money.
This hypothetical example is used for illustrative purposes only. It does not reflect any investment in the Azzad Funds or the portfolios of the Ethical Wrap Program. A systematic investment plan does not ensure a profit or protect against a loss in declining markets. Fees and other charges are not reflected in this example and would reduce the performance shown if they were included.
Procrastinating can cost you money. That's why savvy investors take advantage of time by investing early and consistently. The below hypothetical chart demonstrates how you can save $100 per month @ 8% return.
This is a hypothetical example of mathematical compounding and does not represent the past or future performance of any specific investment product or class of investments. It does not reflect any investment in the Azzad Funds or the portfolios of the Ethical Wrap Program. A systematic investment plan does not ensure a profit and does not protect against loss in a declining market. Fees and other charges are not reflected in this example and would reduce the performance shown if they were included.
|
