Let's face it. With the way things are going and the political unrest in the US lately, and the idea of young working people actually seeing anything like a social security check when they retire becoming a fading hope, investing in your retirement starting early on has become crucial. It has gotten to the point that if you don't take plan for your financial future, you very well may end up not having one.
To make sure you have enough money to be able to retire comfortably, today the Rules of Thumb blog from MoneyThumb wants to offer our readers some valuable tips for starting your retirement investing now.
Let's Talk About Investing in Your Retirement
One great tool MoneyThumb discovered online is this Retirement Calculator from Smart Assets. By using this free, simple tool, you can figure out right now, considering your current wages, how much you will end up with at your retirement age. Below is a section of the article from Smart Asset that accompanies the Retirement Calculator:
Let’s begin with a best case scenario: you’re 25, and you’ve only been working a few years before you decide to get smart about your retirement. You live in a mid-sized city, let’s say Tulsa (Oklahoma!) where you earn $45,000 per year. You currently have $5,000 in your savings account, and by saving $100 per month you manage to put another $5,000 in your 401(k). Your employer has promised to match 100% of your contributions to the retirement savings account, up to 5% of your total income.
After thinking it over, you decide that you would be comfortable living a lifestyle similar to your current one in retirement. Assuming a rate of return on your investments around 4%, you would have to save about $176 per month from now until you turn 67 to retire comfortably. Not bad! If you continue on your current path, however, you'll be over $260,000 short of your retirement goal when the time comes."
MoneyThumb wholeheartedly agrees with the calculations above. Saving for retirement is not going to do the job if you plan on living a comfortable lifestyle once you retire. You MUST also invest in your retirement. To help you decide which investments are best for you and your retirement plan, we will take another bit of advice from Smart Assets. This link takes you to the investing guide section of their website. There you will find everything you could ever need to know about how to invest and the best investments toward retirement.
Don't let investing in your retirement stress you out. It is just part of life and something you need to take by the reins. To help you not stress about how to invest toward retirement in a way that will provide you with a comfortable lifestyle down the road, watch the video below from Money Talk News, titled How to Reduce the Stress of Retirement Investing.
Another way to reduce financial stress is to use the PDF financial file converters from MoneyThumb. Our suite of tools are the best on the market and will save you time and lots of headaches. There is a product for every type of financial need, whether you are an accountant or CPA working for clients, or just a regular Joe or Jane wanting help with your personal bookkeeping.