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Twelve Months of Financial Milestones Working with Financial and Legal Advisors Taking Control of Your Financial Future How Much Money Will
I Need to Achieve
How Should I Manage
My Money to Reach |
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taking CONTROL
OF YOUR FINANCIAL FUTURE
How much money will you need to retire? That depends on factors such as where you live, your health and desired lifestyle, current financial assets, and other factors. Some experts suggest saving enough to have the equivalent of 100 percent of your annual preretirement income for each retirement year. If you have a banker, broker, or financial advisor, ask if he or she can help you estimate how much money you are likely to need for your retirement years. Many firms offer a basic retirement planning program at little or no cost that at least provides a ballpark estimate. There are numerous free online retirement calculators you can find by doing a search for “retirement savings calculators.” Keep in mind that the estimates these calculators provide is very general, and may not be right for you. But it is a place to start. Two calculators you might try using are the AARP online calculator, accessible at www.aarp.org/money, or the calculator on the American Savings Education Council’s Web site, www.asec.org. Don’t be alarmed if you discover a gap between your current savings and the amount you will need to retire. If you are younger, you have time on your side—time to save and accumulate more money for retirement. But what if you have just a few years to retirement, or are already retired? Don’t panic. Take immediate action. Talk
with a financially savvy friend or seek out a professional financial
planner to help assess your current income, savings, and expenses,
and recommend ways you can save more for your retirement.
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The Cost of Retirement
