===============================================================
  SmartWealth AI — Retirement Planning Guide
  Downloaded from: https://smartwealthai.com
  Author: Claudio Galleguillos | CoreForge Systems
===============================================================

STEP 1: KNOW YOUR NUMBER
─────────────────────────
The "4% Rule": To find how much you need to retire comfortably,
multiply your desired annual retirement income by 25.

Example: Want $60,000/year in retirement?
  $60,000 x 25 = $1,500,000 target nest egg

This works because a $1.5M portfolio at 4% withdrawal
historically lasts 30+ years.

YOUR TARGET:
  Desired annual retirement income: $_____________
  Retirement target (x25):          $_____________


STEP 2: ACCOUNT TYPES — USE THEM IN ORDER
───────────────────────────────────────────
1. 401(k) up to employer match — FREE MONEY, do this first
2. HSA (if eligible) — triple tax advantage for healthcare
3. Roth IRA — tax-free growth ($7,000/year limit in 2026)
4. Max out 401(k) — ($23,500/year limit in 2026)
5. Taxable brokerage — after-tax investing, no limits

2026 Contribution Limits:
  401(k): $23,500 ($31,000 if age 50+)
  IRA:    $7,000  ($8,000 if age 50+)
  HSA:    $4,300 individual / $8,550 family


STEP 3: ASSET ALLOCATION BY AGE
─────────────────────────────────
Simple rule: 110 minus your age = % in stocks

Age 30 → 80% stocks, 20% bonds
Age 40 → 70% stocks, 30% bonds
Age 50 → 60% stocks, 40% bonds
Age 60 → 50% stocks, 50% bonds

Recommended simple portfolio (3-fund):
  • VTI  — US Total Stock Market (Vanguard, 0.03% fee)
  • VXUS — International Stocks (Vanguard, 0.07% fee)
  • BND  — US Bond Index (Vanguard, 0.03% fee)


STEP 4: SOCIAL SECURITY STRATEGY
──────────────────────────────────
• Earliest: Age 62 (reduced benefit — avoid if possible)
• Full Retirement Age: 66-67 depending on birth year
• Maximum: Age 70 (benefit grows 8%/year from FRA to 70)

Rule of thumb: If you're healthy and have other income,
delay Social Security to age 70. Each year of delay = ~8% more.


STEP 5: RETIREMENT MILESTONES
───────────────────────────────
By Age 30: Save 1x annual salary
By Age 35: Save 2x annual salary
By Age 40: Save 3x annual salary
By Age 45: Save 4x annual salary
By Age 50: Save 6x annual salary
By Age 55: Save 7x annual salary
By Age 60: Save 8x annual salary
By Age 67: Save 10x annual salary (Fidelity guideline)


STEP 6: THE POWER OF STARTING EARLY
──────────────────────────────────────
$300/month starting at age 25 → $1,000,000+ by age 65 (8% return)
$300/month starting at age 35 → $450,000 by age 65 (8% return)
$300/month starting at age 45 → $180,000 by age 65 (8% return)

The difference between starting at 25 vs 35? $550,000.
The difference between starting at 25 vs 45? $820,000.

START TODAY. Even small amounts compound dramatically.


STEP 7: WITHDRAWAL STRATEGY IN RETIREMENT
───────────────────────────────────────────
Order of withdrawals (most tax-efficient):
1. Required Minimum Distributions (RMDs) from traditional accounts
2. Taxable brokerage accounts (take advantage of low capital gains rates)
3. Traditional 401k/IRA (ordinary income tax)
4. Roth IRA last (tax-free, let it grow as long as possible)

RMD starting age: 73 (as of 2023 SECURE 2.0 Act)


YOUR RETIREMENT TRACKING
──────────────────────────
Current age:             _______
Target retirement age:   _______
Years to retirement:     _______
Current retirement savings: $_______
Monthly contribution:    $_______
Current employer match:  $_______
Estimated Social Security (use ssa.gov): $_______/month

Use our free Retirement Calculator at:
https://smartwealthai.com/calculators/retirement.html

===============================================================
DISCLAIMER: This guide is for educational purposes only.
It does not constitute professional financial advice.
Consult a certified financial planner for personalized guidance.
SmartWealth AI | contacto@tools-nova.com
===============================================================