There is one thing you need to think of while saving for retirement: how much you need for retirement.
People are living longer than they used to. People don’t budget their money in retirement. People run out of money during retirement.
It’s important to make sure that you don’t have to go back to work after you retire.
We’re going to estimate your needs for retirement and how to prepare for it. We’ll get you on track to enhance the years you’ve worked hard for. You have a right to those years.
Even if you’ve taking steps to prepare for those retirement years, this guide will show you a few tricks. The same results are in store for a beginner. You can be a Millennial or a Baby boomer. Age doesn’t matter.
Here are some ways to help you find out how much you need for retirement:
The Misconceptions
Many of you have adopted misconceptions about saving for retirement. But you’ll never save how much you need for retirement with that way of thinking.
Thinking the financial markets are too unpredictable is an excuse. Are you already planning to work through retirement? That stinks.
Predicting your spending habits in the future will not work either. We hope you’re not convinced that Social Security gives you the retirement of your dreams. If so, keep dreaming.
If you want to wake up today to a better option, here’s how: Start saving your net worth immediately. You need at least 15 percent put away yearly… Do you think you can handle that? If not, any contribution is better than nothing. A little savings goes a long way for your future retirement.
If you’re still on the fence with how important saving for retirement is, here are some facts to freak you out:
- Four out of every 10 baby boomers don’t have a penny set aside for retirement.
And there’s more.
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- 38 percent of potential retirees haven’t even tried preparing for it.
- 20 percent of all 401(k) plans get accessed early or used to take out loans.
- 80 percent of people ages 31 to 54 don’t think they can retire in the future.
These stats aren’t from a lack of desire for a worry-free life.
The truth is:
Many Americans don’t know where to start saving for retirement. You should know by now how important it is to be among those who prepare.
Strategy is everything. Bad strategies are why many fail to have the retirement of their dreams. Good strategies will keep you in a tropical oasis for your entire retirement.
Once you forget about the misconceptions, you can start the path to saving how much you need for retirement.
The Strategy
The first step is to figure out the kind of lifestyle you want in retirement. What factors would make your retirement the best retirement? At what age will that be, and how much money do you currently make? Will you still be taking care of your kids or grandchildren?
Working longer improves your chances toward reaching your estate goals. It decreases how much you need to save yearly. The opposite is true for an early retirement. The earlier you retire.. the more you will need to save each year.
There are a few popular calculators online that you can use for calculating these. It’s a great tool to have these calculators online, but you have to start thinking about the number in your head. You know yourself better than the computer does. You know how much you need for retirement.
Start saving 15 percent of your income. If you can save more than that, consider increasing that percentage.
Then you should try to take 50 percent of your accumulated savings, and put it into investments. Don’t take too long to think about if investing is right for you.. The longer you sit and think on it, the more likely you will never make any investments. You’ll second guess it. That gets you caught up in the misconceptions. So don’t panic.
Do the upfront calculations for your goals now. That way, you can build the strategy that will get you how much you need for retirement while you’re working. You’ll follow that strategy for the next 10, 20, 30 or 40 years from now.
Take a look down below to see how much you need for retirement.
Narrowing It Down
Consider these three important factors to that strategy you’re working on.
The Account
Consolidating your money is best done with the most secure option you have. This can be a 401(k) plan. Some credit unions are a great choice for holding your money. Some of them only allow you to withdraw money on certain days.
The Amount
The general rule-of-thumb is to put away 15 percent without question. But if your budget and lifestyle allows it, increase that number. Double or triple it if you can. The amount you save is always tied to how long you need to do it for.
Recent statistics show that Millennials need roughly $1.8 to $2.5 million for retirement. Baby Boomers need only $2 million for a comfortable retirement.
Assets and Estate Building
Here’s where you want to consider investing. How will you split up your funds in investment opportunities? A diverse portfolio is the best way to decide how to divide your funds.
But remember… it shouldn’t be any more than 50 percent of your retirement savings.
These will build a platform for the strategy you’ve already devised.
So there you have it!
Saving for retirement is one thing…
But saving enough for retirement is another.
Use the calculator. Figure out how much you need for retirement. Then start saving.
Get your future secured by starting it today!
