Are You Saving Enough for Retirement?
February 12, 2020
Most Americans gives themselves a grade of C or lower when it comes to saving for retirement, according to a new study from TD Ameritrade. The number of Americans who give themselves an A is equal to those who give themselves an F at 12%, the study also found.
Real estate pros, many of whom are independent contractors, particularly may carry the burden of finding retirement plans for themselves and not being able to take advantage of employers’ 401(k) offerings.
The Motley Fool, a financial and investing advice resource, offers some advice on how to turn around your retirement savings. For one, it suggests that you start by figuring out how much you need on a monthly or annual basis. Nearly 60% of Americans say they don’t know how much money they’ll need for retirement.
The Motley Fool offers one way to estimate this: “Those close to retirement can make a budget to see what income they’ll need, then subtract projected Social Security benefits to figure out what their savings must provide. If you multiply that amount by 25, you’ll get a good idea of the total you should save.”
Then, access online calculators to see how much to save each month to reach that goal. Access one such online calculator from Investor.gov.
Financial analysts also stress the importance of setting up automated contributions to your retirement account. “If you have a 401(k) at work, talk with HR or the account administrator to set up your desired contribution,” The Motley Fool article suggests. “If you don’t have a 401(k), you can set up automatic contributions to an IRA through your bank or brokerage firm. Once yu have your automatic contribution in place, don’t change it unless you’re increasing it.”
Access more tips for saving for retirement for real estate pros:
“Most Americans Give Themselves a Grade of C or Lower in Retirement Saving, Study Says,” The Motley Fool (Feb. 11, 2020)
Updated: February 21, 2020