3 Essential Ingredients in the Recipe For Retirement

Preparing for retirement is a lot like cooking a brisket low and slow. If you’re willing to dedicate the time and energy to gather high-quality ingredients, determine the right recipe for your situation, and monitor and contribute consistently to your dish throughout the long cook of your career, you can enjoy a dream retirement someday.

By Rebecca L. Bennett

 

Depending on your retirement goals, you may not need exactly the same “ingredients” for a successful retirement as the coworker next to you, but there are three tried-and-true ingredients everyone looking to cook up a good retirement will need.

Personal Finance and Retirement Knowledge

You’ll have a hard time following any recipe without basic knowledge of how cooking works, and the same holds true for personal finance and retirement. Invest some time into learning the basics of managing your finances, including budgeting, saving and investing, and schedule an online counseling session with us to learn how TCDRS works.

As TCDRS Member Services Field Representative Bernardo Ortegon explains, the earlier you gather this foundational ingredient, the better. “Own your financial future,” he says. “Take small steps now to plan and save for your future by registering online at TCDRS.org, designating a beneficiary and learning more about the key milestones along your career.”

Multiple Streams of Income

The best recipes feature multiple ingredients to layer in flavor, and the principle is the same with your retirement savings. The more income streams you have in retirement, the better.

“Having multiple streams of income allows retirees to draw from different sources and potentially have a strategy for healthcare, emergencies, inflation, and be strategic about their taxes in retirement,” says TCDRS Member Services Field Representatives Manager Cynthia Gonzales. “If members only have one form of income, they can be vulnerable when unexpected events arise and may be vulnerable to a decline in their purchasing power as inflation affects their income.”

If you’re vested in TCDRS, you have one stream covered because you will get a lifetime monthly benefit at retirement. Next, check to see if you can expect to receive anything from Social Security and consider opening an additional retirement account like a 457(b) or IRA.

Time

The old BBQ adage “low and slow” applies to retirement savings, too. The longer you contribute to your accounts and let them grow, the more interest you’ll accrue over time, so start saving early and keep saving for as long as you can.

“At any age, the most crucial ingredient for our retirement plan is time,” says TCDRS Member Services Field Representative Eric Hanke. “Time for saving to be allocated for investments and time for interest to compound.”

Choose Your Recipe & Let It Simmer

Once you have the three essential ingredients, take some time to think about your goals for your retirement and envision the kind of lifestyle you want to live. This will help you identify any additional items you need to gather for a successful retirement, such as additional retirement accounts or a part-time job, second career or side business in retirement.

And don’t forget the emotional side of things! Make sure that you will be able to fulfill your social needs and maintain a sense of purpose in your retirement. Some retirees find this through senior groups, volunteering, intentional time spent with loved ones, family support, hobbies and more.

Think of us as your retirement sous chefs. We’re here to support you at every stage of the cook. Schedule an online counseling session or call TCDRS Member Services at 800-823-7782 with any questions.

Benefits Personal Finance