How much should I save for my retirement
If you are a young person, just entering the work force, you may not be thinking about your retirement, but you should.
When should I begin saving for retirement?
Saving for retirement while you are young will save you a lot of work and a lot of worry later in life. Usually people will tell you to save up to 15% of your income beginning in your early 20′s. You should evaluate situation and then decide how much money you will be able to save for your retirement. It helps when you set a goal for your retirement.
How much should I set aside for my retirement every year?
There are several calculators on the internet that can help you determine what your retirement savings goal should be and how much money you will have to set aside in order to reach it. Think of it this way. If you are making 20,000.00 a year and you are 18 years old, if you save 10% of that income on a yearly basis you will be saving 2,000.00 a year. By the time that you reach 68 you will have saved about 2,500,000.00 dollars. Over 2 million dollars off of 2,000.00 a year. In the long run, you will have invested 100,000.00 and the rest will have been drawn from the interest that has been paid out to your retirement account.
How will I know if I am saving enough for retirement?
The basic calculation for deciding what you should save for your retirement is this, 10-15 percent of your salary should be saved if you are 18-30 years old, 12-18 percent of your salary should be saved if you are between the ages of 30-40 years old and you should save between 18-25 percent of your salary if you are 40-50 years old. Of course, not everyone can save like this for retirement, but you should save money as much and as often as you can, begin at an early age. Financial security can make all the difference when you retire.
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