Many people are now "a little" behind on their retirement savings. About half have very little or close to none left behind after paying for food, housing, and daily transportation. The same half didn't start early enough to save for their retirement. A lot of parents also say that having children makes it even more difficult to plan for old age. And because people are living longer these days that also means having to save more so that money will last until you reach your 80s or 90s.
The first step to financial freedom in your golden age is to calculate exactly how much you will need to put away. On the internet are several retirement calculators that allow you to consider tax rates, inflation, and adjustable rates of return. You can use websites like TD Ameritade's WealthRuler or Transamerica's worksheet.
Next, you want to put in as much money as you can into your savings. Do not take money out of the market just because shares are down. You might miss out on any future gains and compounding in the meantime. And most early withdrawals result in penalties.
Make changes in your budget. You don't have to dine out five times a week. You don't have to buy all your coffee from Starbucks. Making these changes in your lifestyle will result in a budget change that will allow you to put more money away and saved in the bank.
Diversify your investments. Look at mutual funds. Lessen your exposure to stocks. Consider safer money instruments like bonds and cash as you go closer to your retirement.
Once you've put your money away, don't even think about it. Don't try to track down every single dip in the stock market. You're only going to end up stressing yourself unnecessarily.
The first step to financial freedom in your golden age is to calculate exactly how much you will need to put away. On the internet are several retirement calculators that allow you to consider tax rates, inflation, and adjustable rates of return. You can use websites like TD Ameritade's WealthRuler or Transamerica's worksheet.
Next, you want to put in as much money as you can into your savings. Do not take money out of the market just because shares are down. You might miss out on any future gains and compounding in the meantime. And most early withdrawals result in penalties.
Make changes in your budget. You don't have to dine out five times a week. You don't have to buy all your coffee from Starbucks. Making these changes in your lifestyle will result in a budget change that will allow you to put more money away and saved in the bank.
Diversify your investments. Look at mutual funds. Lessen your exposure to stocks. Consider safer money instruments like bonds and cash as you go closer to your retirement.
Once you've put your money away, don't even think about it. Don't try to track down every single dip in the stock market. You're only going to end up stressing yourself unnecessarily.
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