Subscribe to this blogHow Much Are You Saving for Retirement?
The Golden Age. Do you see yourself traveling the world or starting a new business? How about puttering around in your garden or going back to school? Whatever your dreams or ideas are, do you have the financial cushion to do it?
If you’ve been putting 10% of your paycheck into a 401(k) for the past 20 years, great! But if you are in your forties and are just starting to save, you will need to put at least 20% away.
Used be that financial planners thought that people would need 70% of their income to live on when they retired. Today, the estimate is more like 85%, and, if you want to travel the world, I would plan on 100% because traveling is expensive.
Also, with insurance premiums rising and health care costs out of control, you need to assume that you will be paying all or some of your medical bills out of your retirement account. I’m not a financial planner. I am, however, a realist. I would rather prepare on the high side than not have enough money to support myself. There are many online calculators to help you get personalized figures. www.moneycentral.msn.com/retire/planner.aspx is one that is highly recommended
Since women outlive men by five years or more on average, we need to plan for our financial security assuming that we will be on our own—or maybe you already are. By deciding how much you need to live on in retirement, you can set your goal to invest for continued growth, appreciation, income, or cash flow. No matter what anyone tells you, what you do with your life and your investments is yours to decide.
If you are interested in investing in real estate, businesses, loans, or other assets that aren’t traditional stocks, bonds, and mutual funds, visit www.theentrustgroup.com. No matter what you invest in, the important thing is to start saving now! No one will take better care of you than you!