Am I on track for retirement?

Planning for retirement is one of the most important things you can do for yourself and your loved ones. No matter where you are on your journey to retirement, GuideStone^® is here to support you.

Here are four essential steps to ensure you’re on track for a secure retirement.

1. Ask the right fundamental questions.

Most people begin their journey to retirement with the question, “How much do I need to save for retirement?” A better question to ask yourself is, “How much retirement income do I need to maintain my standard of living?” This will help you develop a plan focused on a specific outcome oriented around your personal goals and needs rather than what could be an arbitrary dollar amount.

Typically, a retiree will need to replace 80% of his or her pre-retirement income. For example, a minister making $50,000 per year may need to replace $40,000 ($50,000 x 0.80) to maintain their standard of living. Social Security benefits may replace roughly 30% of your income, meaning your savings must supply the other 50%.

2. Review your saving strategy.

Generally, financial experts suggest setting aside 10-15% of your income for retirement-saving purposes. This percentage should include personal and employer matching contributions (if applicable). For example, if your employer matches 5% of your salary, you should aim to set aside 10% in your retirement account.

The following strategies may help you start saving:

• Save at a rate high enough to receive your employer’s match. Then, you can commit to raising your contribution rate by at least 1% or 2% every year until you have reached your contribution goal.
• Increase your contributions each time you receive a pay raise or a bonus or as you pay off a debt, such as a credit card or automobile loan.
• Create an annual reminder on your calendar, computer or phone to prompt you to review your balance and increase contributions yearly.

3. Determine which investment approach best meets your unique needs and preferences.

• The “Do It For Me” Approach Through Our Asset Allocation Options

Our professionally managed asset allocation options provide a simple choice for those who want a one-step approach to investing. This approach offers both our Target Date Funds and Target Risk Funds.

• Our Target Date Funds, the MyDestination Funds^®, provide a simple approach to retirement planning. Each Target Date Fund is a “fund-of-funds” with a diversified asset allocation that's more aggressive when you’re younger and gradually becomes more conservative as you approach and move through retirement (the “glide path”). You only need to choose the Fund closest to your retirement date, and we will manage the rest.

• Our Target Risk Funds also provide a simple approach to retirement planning. Like the Target Date Funds, each Fund is a “fund-of-funds.” However, these Funds are managed based on a desired level of sustained risk exposure and aim to align with your risk tolerance rather than a time horizon. Target Risk Funds will maintain the predetermined level of risk exposure and do not follow a glide path.

• The “Do It Myself” Approach

This approach is designed to help you build your own portfolio utilizing a broad range of core and specialty funds that provide the flexibility to address specific investment strategies.

As part of the core and specialty options, we also offer tools to help you create your own portfolio that considers your financial objectives, risk tolerance and time horizon.

• Our Investment Recommendation tool helps identify your investment goals and preferences through a series of simple questions and then provides a specific investment recommendation based on your current circumstances and future objectives.
• Our Retirement Portfolio Models can inform your fund choices across major asset categories. Review each model to select a pre-mixed target allocation that fits you as an investor. Once you select a model, you can incorporate the funds available through your retirement plan in accordance with your model’s asset class framework.

• The “Do It Together” Approach with Advisory Services

We offer a range of financial planning services, tailored investment strategies and ongoing investment management for those looking for a higher level of service.

• With GuideStone Wealth Management™, you can work with a relationship-focused advisor who can guide you in developing a comprehensive plan that aligns your faith with your finances to help secure your family’s future and well-being and maximize your impact on the Kingdom.
• If you’re interested in a simpler service, with GuideStone Managed Accounts™, an advisor will build an investment strategy aligned with your goals, time horizon and risk tolerance. Our team will proactively manage your portfolio and connect with you annually to help ensure your investments remain on track with your financial plan.

4. Periodically do a retirement planning checkup.

As you move toward retirement, take time to prepare for the next steps that are coming your way.

Utilize our Retirement Readiness Assessment for a more in-depth review of your progress and check if you are on track or need to save more to reach your goals.

You should also evaluate your expected cash flow during retirement with our Retirement Income Calculator and your withdrawal options with our Retirement Income Estimate tool.

From the beginning stages of planning your saving and investment strategies to enjoying life in retirement, GuideStone can help guide you every step of the way. The GuideStone Member Journey can help you find the resources you need wherever you are on your path to retirement.

We have several helpful resources and calculators available to help determine where you are and how to get where you want to go.

For more information, contact us at Info@GuideStone.org or 1-888-98-GUIDE (1-888-984-8433) Monday through Friday, 7 a.m. to 6 p.m. CT, to speak with a customer solutions specialist.