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+--- Thread: am i saving enough for retirement? (/thread-105195.html)
am i saving enough for retirement? - 2013 - 02-25-2014 01:43 PM
I don't understand how people can save enough for retirement. I save 400 a month and I am 27. I save in a right , 80% stocks 20% bonds right now. I've not made crazy money. How am I supposed to get to a million for retirement that they say you need ? Thersd not much more I can cut out, I have no debt, I budget , my bills are low
Is it normal to stresses about this 40 years in advance ? The media plays it up to be so scary
- falsi fiable - 02-25-2014 01:57 PM
The earlier you start saving for retirement, the less you have to set aside. Many financial planners recommend setting aside 20% or more of your gross salary. Include employer contributions and matching funds in that 20% goal.
Most people need roughly 80% of their pre-retirement income after retiring. Social Security will cover roughly 20% of that amount. Where will the other 60% come from?
https://www.fidelity.com/viewpoints/personal-finance/8X-retirement-savings
- shipwreck - 02-25-2014 02:09 PM
Save all you can but don't worry. I retired last week and didn't start saving until I was 35. Life life thoughtfully and without addictions and you will be fine. Buy a home, earn as much as you can and you will find in 10-15 years your budget is better and in 20-30 years you will have a good net worth.
When I was about 55 I was able to save 20-30K a year out of 50K-70K salary. Now because I was living on less than I made I only need less than 40K to live really well. I have a tiny mortgage and no other payments so could live on my social security and a small payment I am getting if I had to. 40K will give me at least a thousand a month to spend on stuff I want.
So increase your income and decrease your expenses and savings grow and once you get a few hundred thousand saved investment income makes it grow even faster. Windfalls happen like selling a house at a profit or getting an inheritance so don't blow those and they make it grow faster too.
- likepepsi - 02-25-2014 02:19 PM
First, I am a big believer in saving early for retirement and investing wisely.
That being said, the people who say you have to have a million dollars are people who profit when people save and invest their money, so they aren't exactly unbiased. People have been retiring for years with much less than a million and they aren't all starving and homeless, so clearly there is a way to survive.
Do not stress about it. You save what you can and invest it wisely. However much you manage to accumulate, you'll survive. If you have a lot, you'll have a lot more flexibility and if you don't have all that much, you'll have to be more disciplined. But you'll survive.
Remember, chances are as you go through your career you'll earn more money and be able to save more dollars each month.
- Twopointer - 02-25-2014 02:33 PM
have you read the leaflets of the financial product and searched for the word fee