How to Save Money for Retirement

Saving money for retirement can be easy or difficult

depending on your current salary. If you are like 75

percent of the American population, earning just enough

money in your current job to meet your monthly bills, then

it’s time to do some serious thinking on how you are going

to live when you retire.

Social Security isn’t going to meet all your monthly

payments. That is, if Social Security, or some revised form

of it, still exists when your day of retirement arrives.

Here are some tips on how to save today for your future. No

matter how little, or how much, you earn today.

Estimate how much you must save to give you the income you

know is necessary for you to retire in comfort.

Experts suggest that you will need an income equaling about

75 percent of your current take home pay. Be sure to

estimate a rise in inflation which has historically been

about 5.3 percent per year.

Figure out how much of your current salary will need have to

save each year to achieve your retirement goal by counting

backward from the year you plan to retire to see how many

years you have before retirement. Include the possibility

of being on a fixed income for as long as 20 or 30 years.

Depending on how many years you have until retirement a U.S.

Treasury bond that guarantees six percent interest might be

considered, while stocks might have the potential for a

much higher return, but has a much higher risk of loss.

A financial planner, stockbroker, or an accountant, can

offer guidance, expertise and access to knowledge about

almost any type of investment or retirement planning


Spread your money out over a variety of investments. Some

will prosper while others may fail.

Set up an automatic draft from your bank account from your

paycheck so that a portion of your income goes directly into

your retirement funds.

Pay off major debts, such as home mortgages, college loans

and other significant cash-flow drains, as quickly as you


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