Saving Your Retirement
When you know roughly how much money you’ll need, your next goal is to save that amount. First, you’ll have to map out a savings plan that works for you. Assume a conservative rate of return (e.g., 5 to 6%), and then determine approximately how much you’ll need to save every year between now and your retirement to reach your goal.
The next step is to put your savings plan into action. It’s never too early to get started (ideally, begin saving in your 20’s). To the extent possible, you may want to arrange to have certain amounts taken directly from your paycheck and automatically invested in accounts of your choice (e.g., 401(k) plans, payroll deduction savings).
This arrangement reduces the risk of impulsive or unwise spending that will threaten your savings plan. If possible, save more than you think you’ll need to provide a cushion. For more information schedule a meeting with a financial professional today!