Become a successful retirement story, achieve by understanding what are the factors that could help you build a happy story. It is very possible with just some planning.
Stop Procrastination, start Saving and Planning. The Sooner the Better
We can illustrate that with an example. If you start putting away 100 a month at 30 year old, by the time you are 65, you will have $75,000 in the savings with 3% return. If you start later at 40 years old, you will only have $46,000 at 65 with the same returns. The sooner you start, the more it will be accumulated 30 years later.
Put More Aside
It is simple. If you double the amount you put away, the outcome will be double.
Take Advantage of Pre-Tax Retirement Options
Some employers offer 401K, 403B or other retirement saving plans, or other personal retirement plans like IRA. These plans allow you to put away portion of your income before your Federal income tax. This could allow you to pay tax at potentially a much lower tax rate after your retirement than your current working tax rate. That would help stretch your saved dollars.
Investment with Higher Return makes all the Differences
For savings that will be used after 20-30 years, you can afford to put them in longer term investment that gives higher return rate where the long term risks could be lowered by averaging the ups and downs of the market. And the effect of 1% higher in returns can be huge.
Try out scenarios with our Retirement Calculator using different saving level and investment return rates, you will be surprise by the outcomes.
