Are You Saving Enough for Retirement?Submitted by AssetGrade, LLC. on June 23rd, 2019
Submitted by Kate Hennessy on June 23, 2019
The reason is usually two-fold – you don’t have access to a retirement account (like 401Ks), or you don’t make it a priority. But, let’s be realistic – those that don’t make it a priority, may have other obligations like student loans, building a business and raising a family.
Here’s reality – a recent study found that the median retirement savings for Americans between age 55 and 64 was $107,000. This sum would only translate into $3,000 - $4,000 per year in retirement - hardly enough to cover the cost of living. If you are reading this newsletter, you are likely doing better than the average American. However, we still find many HENRYs (High Earners, Not Rich Yet) are not saving much beyond their 401Ks, so they are not on track to meet their retirement needs.
If you find yourself at a crossroads, here are three steps that you can do today to get yourself back on track:
- Pay off student loan debt and take advantage of your employer match – don’t leave free money on the table.
- Aim to save 15% of your pre-tax income per year – if you are unable to do this right away, just make small cuts to your everyday spending and start saving beyond your 401K.
- Automate your contributions – if you don’t see it then you can’t spend it. Set up automated contributions from your paycheck to your retirement accounts. It is really important to set up a similar type of automated saving to go into your taxable brokerage account – this gets you saving beyond your 401K.
Saving, investing and planning for retirement do not have to be intimidating. Let us help you know where you stand and what steps you need to take to achieve financial success.