Kierra's Path to a Secure Retirement
Kierra, like many others, had a clear financial goal in mind: to save for retirement. She wanted to ensure she had $80,000 to $100,000 saved by the time she reached the age of 59. But as she began her journey, Kierra felt uncertain about how to start. She had no savings yet and wasn’t sure how to build a solid plan that matched her risk tolerance.
The Initial Concern
Kierra approached StepWise with a simple but important question: "How do I make a saving plan?" With no debt to worry about, her primary focus was on finding a secure way to build her retirement savings. She had a conservative risk tolerance and preferred safer investment options. Her goal was to save consistently, but she wasn’t sure how to set it up in a way that would help her reach her retirement target.
The Conversation
During her conversation with her StepWise advisor, Kierra shared more about her financial situation and goals. She planned to retire at 59, and although she had no savings yet, she was committed to contributing $150 to $200 per month towards her retirement. She made it clear that she preferred low-risk investment options, like certificates of deposit (CDs) and high-yield savings accounts, to ensure stability in her savings.
Her advisor listened carefully and understood that Kierra wanted to feel secure in her financial decisions. They reassured her that, with careful planning, she could steadily build her retirement fund over time.
How Kierra Felt After the Conversation
After discussing her options, Kierra felt relieved and empowered. She now had a clear strategy that fit her conservative risk preference and knew she could take small steps that would add up over time. The plan gave her confidence in her ability to grow her savings securely while still having control over her finances.
The Plan
Kierra’s new plan centered around consistency and safety. Here’s what she and her advisor came up with for her goal to save $80,000 to $100,000 for retirement by age 59 using low-risk options.
- Open a High-Yield Savings Account or CD: Kierra would begin by researching and opening an account that offered competitive interest rates and low fees.
- Set Up Automatic Contributions: To ensure she stayed on track, she would set up automatic monthly transfers of $150 to $200 into her new account.
- Monitor Interest Rates: Kierra would regularly review interest rates to make sure she was getting the best return on her savings.
- Review and Adjust Contributions: Each year, she would reassess her financial situation and see if she could increase her contributions to boost her savings further.
- Celebrate Milestones: To stay motivated, Kierra would celebrate every time she reached a new savings milestone, like $10,000 saved.
Kierra felt confident with this plan. It was manageable, safe, and set her up for success in the long term.
Your Path to Financial Security
Are you ready to take control of your retirement like Kierra? Whether you're just starting or looking to improve your saving strategy, StepWise can help you create a personalized plan that fits your financial goals. Ready to get started?