When it comes to saving for retirement, there are a lot of things to consider. How much money do you need to save? What kind of account should you use? And how can you make sure your savings last throughout retirement?
Here’s a quick guide to help you get started on the right track.
How Much Should You Save For Retirement?
The answer to this question depends on a number of factors, including your age, income, and lifestyle. A good rule of thumb is to save at least 10-15% of your income for retirement. Also aim to save enough to replace 70-80% of your pre-retirement income.
If you’re starting to save late in life, you may need to save more than 15% to make up for lost time. And if you want to retire early or maintain a comfortable lifestyle in retirement, you may need to save even more.
What Kind Of Account Should You Use?
There are a few different types of retirement accounts available, including traditional IRA’s, Roth IRA’s, and 401(k)s. Each type of account has its own rules and benefits, so it’s important to choose the right one for your needs.
A traditional IRA is a good option if you’re looking for tax-deferred growth on your savings. With a Roth IRA, you’ll pay taxes on your contributions now, but all future withdrawals are tax-free. And a 401(k) is a good choice if your employer offers matching contributions.
How Can You Make Sure Your Savings Last Throughout Retirement?
There are a few different ways to ensure your savings last throughout retirement. One option is to invest in annuities, which provide guaranteed income for life. Another option is to create a withdrawal plan that includes regular withdrawals, as well as a buffer for unexpected expenses.
There are a few other key things you can do to help ensure you don’t run out of money in retirement, including :
- Saving enough money
- Diversifying your investments
- Planning for potential health care costs
A Final Word
No matter how you choose to save for retirement, the most important thing is to start now. The sooner you start saving, the more time your money has to grow. And the more time your money has to grow, the more comfortable you’ll be in retirement.For more advice on saving for retirement, be sure to check out our other articles. And if you have any questions, our team is here to help. Contact us today!