The Best Retirement Savings Advice

Your retirement savings is the money that is going to replace your income from working when you retire. That dollar amount that is needed is different for everyone. Most people will want to live at a level that is equal to or better than their current lifestyle. Many people will want to do things that they were not able to do when they were working and taking care of their family. Traveling and seeing the world is at the top of the list for most retired people want.

This retirement phase in life is now considered “me time.” Therefore, to answer the question most people are going to need a significant amount of money in their retirement savings.

Many experts say that one million dollars is a good starting figure to try to have for savings on your retirement. This amount may seem intimidating but can be achieved with the right kind of savings options. It is also a good idea to start saving for retirement early in life to get a head start on things. The earlier a person starts the more money they will have at retirement age. To make sure that you will have enough money is to start saving right now and to be patient and diligent.


What Are The Best Retirement Savings Options?

The best retirement saving options for most people are going to be a 401K. If you work for a company with 30 or more employees, they probably have a 401K as a retirement saving option in their benefits package. Please take advantage of this awesome benefit. Most companies probably offer a contribution match up to a certain dollar amount. This is as if they are paying you to invest in your own retirement. They have representatives that can walk you through the sign up process and help you pick the right investments for your 401k contributions.

Another retirement saving option is an IRA also called and Individual Retirement Account. They have two kinds available–the Traditional IRA or the Roth IRA. The way that they are different is the way the money is taxed. In the Roth, the money withdrawn is tax free if certain conditions are met. In a Traditional IRA money withdrawn is taxed as regular income. They are both very good ways to save for retirement you just have to decide which IRA option is best for you based on your income situation. Talking to a financial planner can help you make the decision that is best for you.

Retirement savings is very important and should be started right now if you do not have any money going into a retirement savings account. People can no longer put the fate of their retirement in the trust of a pension from a job or think that Social Security will be there for them when they retire. How much you enjoy your retirement “me time” is going to depend greatly on how much you have saved.


Return to the Retirement Advice Page

Click here to Return from Retirement Savings to Cheapest Places to Retire

feed icon