An experienced San Mateo financial advisor can offer her or his clients some very valuable retirement planning tips. This guidance can be especially helpful since pension plans and Social Security benefits fall far short of providing enough income to support a person throughout her or his retirement.
According to the United States Department of Labor, the average American will spend about 20 years in retirement. Officials also estimate that less than half of adults actually calculate how much they would need to support themselves during these two decades. Unfortunately, many are not preparing for their retirement years properly. In 2010, only about 30 percent of workers who had access to employer contribution plans, such as a 401k, chose not to participate.
Knowledgeable advisers have suggested some basic methods for preparing for the years following employment. The most critical step is to open a savings account. Workers who have already opened these accounts should continue saving, increase the savings deposits when possible, and avoid taking funds from the account.
To provide some meaningful insights into how a savings account can grow, financial advisers have broken down a scenario. If an individual deposits 5,000 dollars into a savings account each year, and earns 7 percent interest, she or he will have 28,754 dollars in the account after five years. After a period of 10 years, the account will grow to 125,645 dollars, and after 25 years, it will reach 316,245 dollars. If the deposits continue each year for 35 years, the account holder will have a balance of 691,184 dollars.
People should calculate their Social Security benefits. Typically, these funds are equal to approximately 40 percent of pre-retirement income. The website of the Social Security Administration offers a helpful retirement benefit estimation page.
A competent San Mateo financial advisor is likely to suggest their clients accumulate 70% to 90% of their pre-retirement annual income. This is the amount that has been specified as minimum levels that are required for one to maintain a pre-retirement standard of living.
According to the United States Department of Labor, the average American will spend about 20 years in retirement. Officials also estimate that less than half of adults actually calculate how much they would need to support themselves during these two decades. Unfortunately, many are not preparing for their retirement years properly. In 2010, only about 30 percent of workers who had access to employer contribution plans, such as a 401k, chose not to participate.
Knowledgeable advisers have suggested some basic methods for preparing for the years following employment. The most critical step is to open a savings account. Workers who have already opened these accounts should continue saving, increase the savings deposits when possible, and avoid taking funds from the account.
To provide some meaningful insights into how a savings account can grow, financial advisers have broken down a scenario. If an individual deposits 5,000 dollars into a savings account each year, and earns 7 percent interest, she or he will have 28,754 dollars in the account after five years. After a period of 10 years, the account will grow to 125,645 dollars, and after 25 years, it will reach 316,245 dollars. If the deposits continue each year for 35 years, the account holder will have a balance of 691,184 dollars.
People should calculate their Social Security benefits. Typically, these funds are equal to approximately 40 percent of pre-retirement income. The website of the Social Security Administration offers a helpful retirement benefit estimation page.
A competent San Mateo financial advisor is likely to suggest their clients accumulate 70% to 90% of their pre-retirement annual income. This is the amount that has been specified as minimum levels that are required for one to maintain a pre-retirement standard of living.
About the Author:
Find a summary of the advantages you get when you consult a San Mateo financial advisor and more information about an experienced financial planner at http://www.lfsfinance.com now.
No comments:
Post a Comment