Your Future, Worth Saving For

The more specific you are in estimating your spending needs in retirement, the easier it will be to meet them.   It helps to develop a clear and realistic picture of your ideal retirement.  Instead of treating your portfolio as a lump sum amount that you will spend down for as long as it lasts, think of it as a pool of assets that will ultimately generate a stream of income that stays with you throughout your retirement years.  This requires planning for the amount of income you will need upon retirement.

One rule of thumb is to contribute as much as you can now, then each year increase the percentage you put aside. Consider striving to eventually reach 10-15% of your pay.   In 2014, participants can contribute up to $17,500 of their gross income; plus, workers age 50 and older can contribute an additional $5,500.

If your employer offers a match, build up to contribute at least enough to get the full match so you aren’t leaving “free money” on the table.

How much you are able to save for retirement or any other goal is directly related to how much you spend.  Create a household budget that includes a monthly retirement savings amount.

The Aldrich Wealth website has several comprehensive planning tools to help you estimate how much you need to save to meet your retirement goals, and other suggestions how to reach those goals.