Tag: how much should i save for retirement
Saving for Retirement According to Your Age
Harvey 0 Comments Planning your Retirement
Let's take a look. If you're in your 20s 30s 40s or 50s – What is the game plan? Here this is really cool. I think this helps people and also maybe might motivate you to take action a little bit more. Let's say you're 30 years old, you want to have at least one times your salary saved. So if you're making $50,000 a year ,you want to make sure that you have 50 gramme in the bank. Let's jump up to 45. You want to have 4 times your annual income saved. Once you get into your 60s, right, that's 8 times. That's a huge number! And you know, procrastination is probably one of the key components of why people are not necessarily successful, but at least this put you in the… I mean one of the biggest questions Al and I I get is, “Am I on track? How do I compare to other people that you see?” Well this is a good idea to take a look at how much money are you making, multiplied by those factors, and then that's going to get you in the ballpark.
Right? Because I think a lot of times it's just simple arithmetic. How much money do I need to maintain the lifestyle that I want long-term? Most of you don't have enough. We're not here to put fear in you. We want to make sure that you're responsible to look at, “Hey, how much do I need?” To give you the confidence to do all the things that you want to do in retirement. Hey, Joe, why don't we do kind of a simple example of let's say some different ages. Perhaps your age 40 or 50 or 60.
Let's say you have $50,000 saved. Let's say you want to reach that $500,000 savings goal. Well, how much do you need to save per month to be able to do that? In this slide it's showing you $179 per month if you're 40. Look what happens if you're in your 50s. $862 dollars per month and if you're 60 you got to fast track this. That's $3,875 per month. That's of course at a 7% rate of return and assuming that you retired age 67.
Just four grand a month. Oh yeah, no problem. That does show why you want to start as early as possible when you're saving. .
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