Top 5 Retirement Questions Asked
Planning for your retirement can be intimidating and overwhelming, thus we’ve compiled a short list of helpful retirement tips.
1. When should I start saving money?
As soon as you can start saving money the better position you are in. Most people start saving for retirement after they have finished college, landed a fulltime job, which is in about their twenties. The sooner you begin saving the more time your money has to grow.
2. Where should I have my money saved?
There are different types of plans that have different features, but the best places to save for your retirement is tax-favored retirement accounts, such as individual retirement accounts (IRAs) and 401(k)s.
3. Should my retirement strategy change as I get older?
Yes. Upon approaching retirement age it is advised to shift more into bonds to protect the accumulated money.
4. How much money will I need in retirement?
This is the big question everyone asks. According to CNN money “you’ll need 70% of your pre-retirement yearly salary to live comfortably.” While that is a general rule, it still all depends on where you currently stand financially; if you have paid off your mortgage, are in excellent health, etc., otherwise you may need more than 70%.
When figuring this figure look at your current expenses then determine how they will change as the years go on. Then be realistic and honest with yourself when figuring out how you want to live in retirement.
5. What if I can’t save enough?
Try your best to put as much money in your savings. Your retirement is very important. Review your current expenditures and see what spending habit can be eliminated. Perhaps investing in a coffee maker instead of spending $4.00 at Starbucks will help out. If that doesn’t help you always have the option to pick up another job.