Written by: Sylecia Weisman-Ramey
If you’re like most Americans, you most likely don’t know how much money you need to live comfortably when you’re older. 61% of Americans don’t know how much money they need to save for retirement, according to Bankrate Survey from 2018. “As much as you can” is the standard advice. The most logical answer is at least 10-15% of your income will begin to make up your retirement fund, starting as soon as your early 20’s. Of course, that’s just a general guide. Here’s an example of what a big difference starting young can make.As you can see in the graph above, the earlier you save, the better off you are in the future when you are no longer able to work. Many might ask well, where should I save my retirement funds at? There’s 2 main accounts that come to mind.The best places to keep your retirement funds are IRA’s and 401(k)’s. As you approach the age for retirement, most experts say that people should gradually start increasing the amount of money they put in their retirement fund as they get older. When planning for retirement, the common truth is that the earlier you start saving and investing, the better off you will be. They say to start saving as much as you can in the moment, but at our age that may not be the case. Extra money? Don’t spend it, put it in your retirement fund and make sure to set goals for yourself. Overall, It’s never too early or never too late to save for retirement.
Works Cited
Dayana, and Forbes. “How to Save for Retirement.” NerdWallet, NerdWallet, 8 Apr. 2019, www.nerdwallet.com/article/investing/how-to-save-for-retirement.Pant, Paula. “How Much Money Should You Put into Your 401(k)?” The Balance, The Balance, 10 Sept. 2019, www.thebalance.com/how-much-should-i-put-in-my-401k-453991
Tepper, Taylor. “How To Save For Retirement.” Bankrate, Bankrate.com, 4 July 2019, www.bankrate.com/retirement/how-to-save-for-retirement/.
This is a great introduction to what people should be doing with their money in regards to investing. This also fits in great with what our class is learning right now. Invest now, something people always say or start now. It can be hard to think about or choose to do right now, but it will matter when you are 65 years old and you are wanting to retire. It is easier said than done, if you have extra money you should choose to put it away in your retirement fund instead of spending but is that really what happens? For a college student it can be hard to put money away when you have student loans to pay, food, and you are not living off of a huge income. There are certain life style chooses that people have to make. One aspect that I wish you would have highlighted would be the fact that the more you save the more that you can enjoy your life. You can take that trip that you always wanted to take if you saved enough money.You can choose to retire at 60 instead of 65, and spend more time with your grandchildren. That thought process is a tip in itself.
ReplyDelete