One financial objective that everyone should prioritize is saving for retirement. It entails putting some of your earnings aside to guarantee a decent living once you retire. Your Fresno financial advisor says this that figuring out how much money is appropriate to save for retirement might be a challenge for a lot of individuals. Putting aside at least 15% of your salary for retirement is one generally advised rule of thumb.
Ample time for growth: Investing 15% of your salary regularly from the beginning will help your retirement savings grow over a longer period of time. This longer period gives your assets more chances to grow in value and take advantage of compound interest.
Financial security: You may make sure you have a sizable nest egg to rely on when you retire by setting aside 15% of your salary. It acts as a safety net, preventing you from depending entirely on retirement payments from the government or from having financial difficulties in your later years.
To determine the amount you should be saving for retirement each year, multiply your pre-tax income by 0.15, or 15% of your total income. Divide by the number of pay periods: To find out how much you should be saving out of each paycheck if you get your income on a regular basis (weekly, bi-weekly, monthly, etc.), divide the estimated yearly savings amount by the number of pay periods.
Create a budget: Make a budget that includes your income, spending, and savings targets after evaluating your existing financial status. You can find areas where you might reduce spending and contribute more to your retirement savings by using a budget.
Automate your savings: Establish automatic payroll transfers to a retirement account, such as an Individual Retirement Account (IRA) or 401(k), from your paycheck. By automating your savings, you can make sure that a certain percentage of your income is set aside for retirement without having to remember to do it by hand.
Take advantage of employer matching: If your employer offers a retirement savings plan with a matching contribution, make sure to contribute enough to maximize the employer match. This is essentially free money that can significantly boost your retirement savings.
Are you trying to find a financial advisor in Fresno? Look no further than Soutas Financial & Insurance Solutions Inc. your financial advisor in Fresno, Ca is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax- Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.
We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!
Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.
