By Scott Martin
With the economic crisis all around us, people are really getting flustered as to how to go ahead and save money for their retirement when they don't even have enough for now? There are several doubts in their mind and all this can be summed up into one question, "How much do I need to save for retirement?"
The mistake that most calculators commit is the fact that they consider the current annual income as a reference for all their manipulations. But is this the right approach? Consider the scenario when a person is earning an income of say $40,000 annually and they end up spending $60,000. Consider a parallel scenario where a person has an income of say, $100,000 and spends only $50,000. In both these cases, the income cannot be chosen as reference points to actually decide the answer to how much do I need to save for retirement.
Thus the fact that needs to be considered is your current lifestyle which includes your expenses. The way you spend will not change dramatically, even after your retirement. This will tell you how much you exactly need to save to have that amount in your accounts safe for usage in your retirement years.
The idea is to save as much as possible, even if you have to tighten the surroundings right now. Another option would be to try and increase the returns that your money is making for you. For instance imagine the difference to your retirement fund if you money was earning 25% per year rather than 6%? When you are old here can be emergency medical situations and the like that can arise, you need to be extra careful about how much do I need to save for retirement.
You can even take the help of financial helpers who are there to advice you on how to go about saving now and who can even show you the various options that are. Unfortunately the general level of support is not that high and I would recommend taking charge of your own money when possible. Let's face it - Who is going to take better care of your hard earned money, You or an adviser who is getting paid regardless of how your investments perform? To retire wealthy you really need to start taking control of your own investment decisions.
Do you want to learn an Investment strategy that will allow you to make $15,000 per month? http://www.SharesPropertyMoney.com would like to offer you a free gift valued at $97 - A FREE Step by Step DVD that will show you exactly how to make this simple (but secret) strategy work.
This is the best way to make sure that you can Save For Retirement - Plus it is Free. "Thanks to this strategy I have quit my job and now make a very good living from my investing."
Article Source: http://EzineArticles.com/?expert=Scott_Martin
http://EzineArticles.com/?How-Much-Do-I-Need-to-Save-For-Retirement?&id=3055901
With the economic crisis all around us, people are really getting flustered as to how to go ahead and save money for their retirement when they don't even have enough for now? There are several doubts in their mind and all this can be summed up into one question, "How much do I need to save for retirement?"
The mistake that most calculators commit is the fact that they consider the current annual income as a reference for all their manipulations. But is this the right approach? Consider the scenario when a person is earning an income of say $40,000 annually and they end up spending $60,000. Consider a parallel scenario where a person has an income of say, $100,000 and spends only $50,000. In both these cases, the income cannot be chosen as reference points to actually decide the answer to how much do I need to save for retirement.
Thus the fact that needs to be considered is your current lifestyle which includes your expenses. The way you spend will not change dramatically, even after your retirement. This will tell you how much you exactly need to save to have that amount in your accounts safe for usage in your retirement years.
The idea is to save as much as possible, even if you have to tighten the surroundings right now. Another option would be to try and increase the returns that your money is making for you. For instance imagine the difference to your retirement fund if you money was earning 25% per year rather than 6%? When you are old here can be emergency medical situations and the like that can arise, you need to be extra careful about how much do I need to save for retirement.
You can even take the help of financial helpers who are there to advice you on how to go about saving now and who can even show you the various options that are. Unfortunately the general level of support is not that high and I would recommend taking charge of your own money when possible. Let's face it - Who is going to take better care of your hard earned money, You or an adviser who is getting paid regardless of how your investments perform? To retire wealthy you really need to start taking control of your own investment decisions.
Do you want to learn an Investment strategy that will allow you to make $15,000 per month? http://www.SharesPropertyMoney.com would like to offer you a free gift valued at $97 - A FREE Step by Step DVD that will show you exactly how to make this simple (but secret) strategy work.
This is the best way to make sure that you can Save For Retirement - Plus it is Free. "Thanks to this strategy I have quit my job and now make a very good living from my investing."
Article Source: http://EzineArticles.com/?expert=Scott_Martin
http://EzineArticles.com/?How-Much-Do-I-Need-to-Save-For-Retirement?&id=3055901
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