OK, if today you are around forty or older and you feel like you do not have enough savings for a retirement. Then do not worry, it is not too late when it comes to saving money for retirement.
First, estimate how much retirement savings you think you would need. Calculate approximately the amount of money you will be able to live happily on throughout retirement. Guestimate how long you expect to live. This computation (retirement calculator) is just a rough figure and after you have the number, you will need to make a list of your outside funds and investments excluding savings. Include any type of pension or Social Security or even a retirement plan that you have.
Set reasonable expectations. You need a retirement plan to reach the amount you have calculated if there is a big difference in the total after adding up your different sources. If you work for a company that has a 401k or 403b or any other type of voluntary contribution program for retirement it would be a wise investment to take advantage of. A really good deal is if your place of employment matches your contribution because that all becomes free money and you should never turn your back on free money. You need whatever you can have and get at this point of your age. You could also consider relocating or downsizing your home. You shouldn't need a huge 3000 square foot home if it is only you and your spouse.
Don’t be conservative. Even as you hit your late forties to fifties you still have several years, perhaps decades before you're going to use your retirement earnings.
What is most important is you should start now and let that retirement nest egg grow. Also, there are many places to go to ask questions when it comes to retirement and making a solid investment. Search them now, and take advantage of them.
Photo courtesy of firstrung.co.uk
First, estimate how much retirement savings you think you would need. Calculate approximately the amount of money you will be able to live happily on throughout retirement. Guestimate how long you expect to live. This computation (retirement calculator) is just a rough figure and after you have the number, you will need to make a list of your outside funds and investments excluding savings. Include any type of pension or Social Security or even a retirement plan that you have.
Set reasonable expectations. You need a retirement plan to reach the amount you have calculated if there is a big difference in the total after adding up your different sources. If you work for a company that has a 401k or 403b or any other type of voluntary contribution program for retirement it would be a wise investment to take advantage of. A really good deal is if your place of employment matches your contribution because that all becomes free money and you should never turn your back on free money. You need whatever you can have and get at this point of your age. You could also consider relocating or downsizing your home. You shouldn't need a huge 3000 square foot home if it is only you and your spouse.
Don’t be conservative. Even as you hit your late forties to fifties you still have several years, perhaps decades before you're going to use your retirement earnings.
What is most important is you should start now and let that retirement nest egg grow. Also, there are many places to go to ask questions when it comes to retirement and making a solid investment. Search them now, and take advantage of them.
Photo courtesy of firstrung.co.uk
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