People work so hard throughout their life with retirement as their end goal. All age ranges often ask this important question, “How much do I need to retire?” There is no clear, easy answer to this commonly asked question. Retirement savings is not a one-size-fits-all situation. Many variables effect how much you should invest and save. Your trusted financial advisor team in St. Louis is here to help you identify these variables to help better plan for your retirement down the road.
The amount you work toward setting aside for retirement should be based on your unique financial situation. When it comes down to it, the calculation is comprised of your age, spending habits, debts, and any potential income during retirement.
Age is a major factor in the retirement planning process. Your current age and the age at which you plan to retire effects how you should start saving or investing. As a younger individual planning for retirement, you may not need to approach the situation quite as aggressively as others. You can spread out the amount you invest and save for retirement over several years leading up to retirement. A person who is closer to retirement age may want to buckle down and invest and save in methods to help build up their nest egg quickly.
Your spending habits are a significant factor in planning for retirement. If you plan to cut back on spending as you retire, not as much will be needed to set aside. Many retirees end up spending more in their retirement due to having more free time in which to spend money. Grandchildren are another big expense for retirement aged individuals. Take into account these extra expenses as you create a plan.
The amount of money you will need to live when you retire should have debts calculated into it. Many people work to pay off their major expense, their mortgage, before retirement. This can help reduce the amount you will need to set aside drastically. Other debt, like vehicle loans or credit cards should be factored in when planning for retirement.
Additional income, whether it be 401K through your employer or rental properties you may own, should be determined to help calculate an accurate goal in which you wish to save. Many retirees work part time to bring in additional income as well.
The future is uncertain which can make planning for retirement difficult. Let the expert financial advisors help make the planning process easier. Bogetto & Associates can help create a custom retirement savings and investing plan to meet your individual wants and needs. For help calculating how much you should save for your retirement fund, contact Bogetto & Associates. We want you to be prepared and be able to enjoy your retirement in which you have worked so hard.