Burbank retirement planning requires some advanced planning to ensure that you have the resources you need to not only survive, but thrive, in this bustling Southern California community. Just north of Los Angeles, Burbank, CA, is known as the "Media Capital of the World," home to many large entertainment companies, including the Walt Disney Co. and Warner Bros. What this means for those interested in Burbank retirement planning is that a lot of your neighbors will be actors, artists, and others who were active in the entertainment business.
If you are planning to retire in Burbank, CA, you must consider that the cost of living is going to be higher here than in other parts of the country. Median home prices are about $450,000 in the Burbank area and everything else, from groceries to gas, is going to carry a higher price tag in CA than in other parts of the country. But if you have been diligent in your California retirement saving and planning, you should be able to retire comfortably in Burbank.
A Great Place to Start
When beginning your Burbank retirement planning, consider the strategies that will allow you to acquire a large nest egg quickly. Investing in a 401K account at your place of employment is a great place to start. That's because employers often match contributions up to 6% of pre-tax salary. According to the IRS, limits for 401K contributions are now $16,500 a year, but are expected to be tied to a cost-of-living index after 2011. This means you should be able to contribute even more to your 401K account in the future, which should help in your retirement planning.
Got a late start on your Burbank retirement planning? If you are 50 or older, you can now make catch-up contributions of $5,500 a year. Those catch-up contributions also will be tied to a cost-of-living index after 2011, according to the IRS, which means you can put away even more towards your retirement.
Another strategy you may want to consider in Burbank retirement planning is investing in the stock market and mutual funds. Historically, the rate of returns on mutual funds is usually higher than if you invest in individual stocks, plus it helps spread your risk. But with the right experts on your side, you can boost your net worth by playing the stock market with savvy.
Adjust Your Strategy
Consult a qualified retirement planning specialist to help you in planning an aggressive strategy if you want to grow your nest egg quickly. However, the closer you get to retirement age, the more conservative you want to be in your choice of investment vehicles. You don't want to risk your savings right before you retire, financial experts say, because you don't have the luxury of time to rebuild lost assets.
Annuities are another vehicle you may want to consider in your Burbank retirement planning. A contract between you and an insurance company, an annuity guarantees that you will receive a series of payments just when you need them. An important consideration is that the money you pay into an annuity grows tax-deferred, which can pay off over time.
Investing in real estate also is a time-honored retirement vehicle, but realize that this money is not liquid -- you'll have to sell the real estate to reap your investment. When you are ready to retire, you can sell your home or other real estate and use that money to settle in your new home in Burbank. However, be sure that this is just one part of your retirement plan, financial experts advise.
Ask the Experts
To figure out the best strategy for your Burbank retirement planning, consult a professional who can assess your financial situation and let you know if you are on track for retiring in Burbank. If you aren't on track, now is the time to get focused on building up your assets so that you can retire in the manner you've always dreamed of. If you are on track, now is not the time to relax in your Burbank retirement planning. Keep to the plan so you remain on track, checking in with financial specialists every year or so to ensure that everything is in order.
In fact, you may want to consider touching base with a professional in the area where you plan to retire. This can give you valuable insight into how to adequately budget your funds -- before and after you retire -- so that your nest egg will always be available to you and your family. If you start your Burbank retirement planning early, you should have a quite a nest egg built up that will allow you to live in this vibrant California community in a Hollywood-like style.
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