Tuesday, December 4, 2012

Retirement Saving

Travis Ace

Saving for retirement makes a lot of people nervous. It brings up a lot of questions that we don't know the answer to. How much do I need to save? When can I formally retire? What's the best way to grow my assets without risking my nest egg? What percentage of bonds, stocks and cash should I have at my age?

While all of these are valid questions that we may never know, there are things we can control to help ease the stress and uncertainty of retirement. Here are a couple ways to tackle this:

1. Find a retirement calculator and play with how much you put away per year, average rate of return, when you plan to retire and how much income you think you will need. While this may not create the "magic number" so many experts talk about, it does highlight how your annual contributions add up and a goal to start with. It may be best to visit multiple sites to see how this can vary.

2. Don't just file away your investment statements for your 401k or other financial accounts. Find the rate of return and fees you pay. If you are not satisfied with the performance, it may be time to find lower fee alternatives or time to reallocate your assets.

3. The best thing you can do is save as much as possible. This is the one item you can control and it should be the focus for all investors. Live below your means, cut back on expenses and put more away if you want to retire early and enjoy your time after your career.

Here is a link for a couple retirement calculators:
AARP's Site

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