If you're eligible for a 5 percent match on your 401(k) plan and you contribute 5 percent of your salary to the account, you're already putting away 10 percent.To know if you're on the right track, start by figuring out your savings rate, recommends Eric Roberge, a CFP and founder of Beyond Your Hammock.
Do you know how much money you'll need to save for retirement?More than 8 in 10 Americans have no idea how much retirement savings they'll need when leaving the workforce, according to a recent Merrill Lynch survey.
But if you save regularly and invest sensibly, you will eventually hit a crossover point where your investment gains exceed the contributions you make to your accounts.The first month, in this example, you contribute $375 to your account, which racks up a grand total of less than $2 in investment gains for the month.
If you'd rather avoid that fate, be sure to steer clear of these potentially costly mistakes.But if your income is substantially lower in retirement, you'll need to tweak your budget accordingly.
And if you want to know what retirement costs the typical senior, the answer is $828,000.Multiply $46,000 by 18, and you're looking at a $828,000 nest egg to aim for, at least as a starting point.
If you're a millennial, then you have one major advantage when it comes to saving for retirement: time.This way, you'll get to fund your retirement plan with tax-free money and you won't pay tax on investment gains until you're ready to take withdrawals.
GOBankingRates, which uncovered this data, also reports that just 16% of working adults have $300,000 or more in retirement savings.Here are the top reasons Americans are ignoring their retirement accounts -- and why they're all completely bogus.
I have a completely different philosophy for retirement stocks than virtually anybody else in the financial markets.The other terrible advice that is given to current and pending retirees is that retirement investors should plow money into blue-chip stocks that pay dividends of 2% to 3%.
The number of people who expect to retire “broke”, meaning they have less than $10,000 saved for retirement fell to 42% from 55% last year, according to a survey by GoBankingRates.This also means that more than half of Americans have more than $10,000 saved for retirement.
If you're concerned about having enough money in retirement, you're not alone.And if you're behind on savings, you're in good company there as well.
But early retirement aside, women are doing an inadequate job of saving for the future.Protecting yourself from the unknownIf you're low on savings and aren't taking steps to account for an early retirement, you're doing yourself a major disservice -- so stop, and get proactive instead.
But new data reveals that when it comes to retirement, men are far more secure.While 51% of men feel like they're in control of their retirement planning, only 38% of women can say the same.
For instance, let's assume you want to save the recommended $1 million before leaving the workforce.04 million $1.
My Motley Fool colleague Maurie Backman has spent a lot of time analyzing Social Security decisions, and she makes a strong case here for delaying as long as you can possibly can before claiming Social Security.However, for those who are still employed, the Social Security Administration has a nasty provision that can sometimes result in your having to forfeit Social Security benefits.
Unfortunately, most women don't really know what it'll take to achieve a secure retirement.In a recent Transamerica study, women said they would need a median savings balance of $500,000 to be comfortable in retirement.
If that's the case, then you'll need to get creative about generating income to compensate (more on that in a bit).The aforementioned formula assumes an average-length retirement, but if you're forced out of a job at, say, age 58, you'll probably be looking at a longer retirement than someone who works until age 63.
It’s not a big secret that retirement will be more expensive than you thought, but learn about tell-tale signs yours might get pricey — and click here to read about ways you can prepare.You Don’t Have a Long-Term Care PlanRetirement is expensive in general — and it those dollar signs could just keep multiplying if you need long-term care.
Part of the problem is that you don't know just how long your retirement will last.The average length of retirement: 18 yearsWhat is the average length of retirement?
Read on to see a few key retirement planning mistakes that can threaten your plans — and learn how to avoid them.Having Incorrect Beneficiary DesignationsAnother dangerous mistake many people make during retirement planning is not keeping things up to date.
Here are three simple ways to make sure you don't outspend your nest egg.Understand safe withdrawal ratesAs the name suggests, a safe withdrawal rate is the rate at which you can draw down your retirement accounts with minimal risk of going bankrupt.