J
Jacqueline G.
For me it is hard to save a lot money. I just started saving $40 at month. I'm open for any suggestions!
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For me it is hard to save a lot money. I just started saving $40 at month. I'm open for any suggestions!
The "recommended" amount is about 15% of your gross income. But it's important to just get started so you're on the right path! Definitely consider the differences between roth and traditional accounts, watch out for funds with high expense ratios and try to keep it simple. I like the "3 fund portfolio" it's easy to do yourself and it's cheap.
To have an understanding of how much you want to save for retirement, you will need to look at your retirement goals. If you have not set goals yet, ask yourself questions such as, what age are you thinking of retiring? How much of your working income needs to be replaced once you retire? Do you plan to still work part-time in retirement? Will you be debt free? What are your estimated healthcare costs? Are you planning on staying in your current home, downsizing, or moving? Do you have hobbies or interests you plan to start or continue in retirement that may cost extra money?
It's so hard now to save money.
Thank you for your suggestions. I need to plan retirement because I do not know what I'm going to do.
Thanks for the suggestions. I too need to start thinking about retirement.
It's never too early to think about retirement, but it's also never too late. You just need to get started.
As much as you can? I'm 58 and trying my best to save everything and earn as much as possible.
How long you have to work to qualify for retirement?
How long you have to work to qualify for retirement?
@Gladys R., using the most basic idea of retirement, you can retire when you've achieved financial independence and no longer need to work to cover your living expenses. Having said that, it seems like you're asking how long you have to work to qualify for retirement benefits. For government benefits, that would depend on the government and the specific benefit. For employer benefits, that would depend on the employer. Within that, you probably also have to distinguish between how long you need to work to qualify for the benefits and at what ages you can access those benefits, with or without penalties.
Getting started is a good first step. If you have a 401k with a company match take advantage of it. Smartypig and Ally are good savings platforms.
Thank you for your advice.
@Elena B. Thank you for posing those questions to consider. I do wonder though, how do you estimate the cost of such things? Do you just take the average of what they cost today and multiply by a future-chart?
@Elena B. Thank you for posing those questions to consider. I do wonder though, how do you estimate the cost of such things? Do you just take the average of what they cost today and multiply by a future-chart?
I used today’s dollars when it comes to percentage of income needed in retirement. I based the healthcare cost estimates on what retirees at my company pays for retiree plans plus extra for copayments and medications.
Ok
Getting started is a good first step. If you have a 401k with a company match take advantage of it. Smartypig and Ally are good savings platforms.
Hadn't heard of Smartypig yet. Going to check it out! Thank you
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I think the best thing to do is to take advantage of employer matching on your 401k, if you have that. If your employer matches your contributions (even if it's only a percentage) up to a certain amount of your income, max it out! If they match 50% up to 6% when you contribute, then set your deduction at 6% so that they contribute the full 3% they will do.
At least 5,000
When you reach 50 you can increase your annual contributions to your 401k (extra 6500 to 26000) and/or IRA's (extra 1000 to 7000) by "catchup" contributions if you are eligible by earned income.
Honestly investing as much as possible. Contribute to Roth IRA, 401k, and also contribute to a HSA. Whatever you can contribute to contribute to it.