Chris, 63, relaxed, rejuvenated, retired
Welcome! Follow Chris back in time on his path to retirement.
Chris, with the help of a financial advisor, made the decisions to reassess his retirement savings plan at key milestones throughout his life, so he was able to retire as planned.
Scroll down to follow Chris’ journey
Chris made saving for retirement a priority early in life. He chose a Prudential Day One® Fund, a professionally designed investment option available in his employer's retirement plan.
Day One Funds are target date funds available through an employer’s retirement plan. Generally, target date funds follow a predetermined “glidepath” that adjusts a fund’s asset allocation over time, becoming more conservative as the target date approaches by increasing exposure to bonds and reducing exposure to stocks. Investing in a target date fund may enable an investor to stay in a single fund through each life stage. Anticipated retirement date, age, risk tolerance, and other investments, as well as planned withdrawals, may affect how an investor selects a target date fund. Learn about Day One Funds.
Age 45, Aunt Betty will be missed … her gift, appreciated
Chris received a sizable inheritance from his late, great aunt.
Did you receive an inheritance or think you may receive one?
Chris’ inheritance led him to review his retirement savings plan and decide whether to change his plan contribution rate or assume more or less risk by choosing a Day One Fund with a different target date.
Receiving an unexpected inheritance or cash gift may enable you to consider other lifestyle choices, such as retiring early or retiring as planned and potentially building more savings by continuing to contribute to your plan.
Age 36, bundles of joy are always adorable—and often costly.
Chris and his wife decided the time was right to become parents. Planning for the expenses associated with raising his son—from crib to college—would be important for his family’s future.
Do you already have children or think you might someday?
Despite the added expense of a child, Chris was committed to saving for retirement as planned. Some options he considered were: finding ways to cut household expenses instead of reducing his retirement plan contribution rate, and changing the risk profile of his investment allocation by choosing a Day One Fund with a different target date.
Having a child places new demands on finances that can affect your retirement savings plan. It may mean making changes to your investment allocation under the plan. This could include assuming more or less risk by investing in a Day One Fund with a different target date, or possibly adjusting your planned retirement date.
Age 29, there’s just no place like it.
Chris and his wife finally saved enough to buy their first home.
Do you already own a home or plan to buy one?
It was important to Chris to stay on track with his retirement savings plan. Before buying his house, Chris reviewed his investments, including his Day One Fund allocation, to see if he could continue contributing at his current rate while managing the cost of the mortgage. Options he considered included looking for an alternative mortgage and changing his expected retirement date.
A mortgage can be a major long-term expense that can affect your retirement savings plan. If your mortgage takes up a lot of your income, it may affect the amount you can save for retirement, your risk tolerance, your choice of investments, and your planned retirement date.
At age 24, Chris got married, landed a great job, and chose a Day One Fund
Chris knew that planning for his financial future was smart. Newly married, he wanted a retirement savings plan that could help provide a source of income for his Day One of retirement and beyond.
The earlier you start saving, the better—
an investment returning 6% yearly doubles every 12 years Reference:Rule of 72
When Chris attended his company's education meeting explaining his employer's retirement plan, he learned that he could start saving for retirement right away. He chose a Day One Fund in his employer’s retirement plan based on the year he hoped to retire.