Search Articles
Browse Categories
It's Never Too Late to Save Money
By Sandra Reynolds, CFP
Most people have good intentions about saving for retirement. But few know when to start or how much is enough. Far too many people use credit cards as an additional income source and sink further into debt. This leaves precious few dollars to put aside for savings and retirement. And, the interest on credit cards builds up much faster than interest on a savings account.
Of all workers, over half have saved less than $25,000 for retirement.1 A better approach would be to allocate a certain amount for savings every month and pay yourself as though you were a creditor so you would treat the payment like any other expense.
How much should I save for retirement?
A good rule of thumb for 20 – 29 year olds is to start with a minimum of 10% of your earnings and invest that money in retirement savings and then take half of all raises and add them to the 10% going forward. If you are older, say 30 – 45 you should start with a higher percentage, like 12 - 15% and then take half of all raises going forward. Of course, if you are like a lot of people and haven’t really accumulated much in retirement savings by the age of 45, you may want to consider targeting 15 – 20% of your earnings for retirement so that you can actually retire while still young enough to enjoy it.
Sandra Reynolds, CFP
Sandra Reynolds, CFP® specializes in the financial issues affecting women and their loved ones.
Sandy has been a guest speaker and participant at the State Treasurers’ Money Matters Conference for Women in Massachusetts and Maine. She has also been quoted in articles for “Investment Advisor”, “Financial Planning”, and “The Journal of Financial Planning” magazines as well as appearing on WOMR 92.1 radio. She is a retired teacher and adjunct faculty for the College of Financial Planning.
Sandra Reynolds, CFP® welcomes clients from all walks of life with varying income and net worth levels. She offers clients a safe, relaxed and non-judgmental atmosphere where they can explore their values, goals and life plans.
Securities and Investment Advisory Services Provided through Capital Analysts Incorporated Member FINRA/SIPC.
Please feel free to contact Sandy at 508-636-6521 or visit www.reynplans.com
Unrated
Comments
- No Comments Found. Submit Comment
|
Article Options |
Share your Opinion and WIN!
Take our quick survey & enter to WIN a gift certificate.