Save For Your
Add $50,000, $100,000 or even $500,000 to Your Retirement Savings
personal savings are one of the four building blocks of a financially
secure retirement along with your company's retirement plan, your IRA
and Social Security. The amounts you will receive from those last three
sources are somewhat out of your control. Social Security benefits are
based on your wages, your IRA contributions are limited and your employer's
retirement plan may limit what you can contribute. However, you have
complete control over your personal savings.
exactly how much you need to save for retirement can be complicated.
To do the perfect calculation, you need to know your level of expenses
during retirement, your future tax rates, the future returns on your
assets and ultimately how long you are going to live. With all these
uncertainties, the thought of doing the calculation can be daunting.
More is Better than Having Less
Even without an exact calculation, it is probably safe to assume that
you want to accumulate more funds so you can enjoy the type of retirement
lifestyle you want. Here is one simple idea that may give you some motivation
to do something you know you should be doing - saving more.
Early and Often is Under Your Control
The keys to accumulating a larger retirement nest-egg are to start early,
save often and earn competitive returns on your funds. If you are 35
years old and plan to retire at age 65 (30 years to save), you can accumulate
and additional $250,000 by saving $300 per month (assuming an earnings
rate of 5%). Use the calculator to how much you need to save each month
to have more when you retire.
Your Automatic Savings Today
There is no easier way to save than with an automatic savings plan.
If you are already using direct deposit for your paycheck, have your
financial institution transfer the amount each month. You can also have
your employer deduct the amount each month and deposit into the account
of your choice with a payroll deduction program. Ask your employer for
the form to start now.