How to Start Saving for Retirement
Have you started to save for your retirement? Don’t stress – better late than never! We’re happy you’re here to learn how to start planning and saving for your retirement. Saving money isn’t always so easy. Life can get in the way. However, you want to be prepared for the future when you retire and don’t have to worry about how you’re going to pay for rent, a mortgage, or daily necessities.
One question you may ask yourself is, “How much should I have saved for retirement?” Well, there’s no one right answer, but financial experts recommend 10 to 15 percent of your pretax income go towards your annual retirement savings. This percentage of how much you will save will depend on how you want to live during your retirement, how well/much you save now, how much you spend now, and how long you live.
Our financial experts at Montoya Financial Strategies wanted to share with you some steps to take to help you start planning and saving for your retirement. At Montoya, our clients work with a financial planning advisor who help them get in control of their financial future. We help them establish clear, realistic goals for success. We help our clients stay on track with their goals.
Tips on How Much to Save for Retirement
• Think about and estimate your future needs – this will take a lot of work. With this step, you’re basically figuring out future income needs or s budget. If you already have a budget started, you’re in a better position. Write down all your monthly expenses. In a second column, guestimate what these expenses will be in retirement – some could be lower or gone (student loans, car payments, etc.). Then, add on things in the future you may want to do or have like traveling, playing golf, etc. Altogether, you will have somewhat of an idea of your spending habits on a monthly basis in the future. Multiply this number by 12 and compare this to your current income. You will see how much income you should aim to replace during retirement. A financial advisor can help you with all of this.
• If you aim to save 15% of your income now, you could live off 85% of your income in retirement.
• Use a retirement calculator to access where you stand in your savings progress. Ask our financial advisors about ways to check in on your retirement savings progress.
• Calculate your retirement needs often. We all have changes in life or surprises. There could be a new baby. There could be additional school. Less expenses. Longer lifespan. There could be a new job with a higher salary. Adjust your retirement calculations as you go.
Looking for a Financial Planning Advisor to Help with Retirement?
Planning for retirement can be a struggle. When there’s a lot of variables, it is easy to feel overwhelmed. Don’t ignore your finances and planning because of the difficulty – it’s easy to get help with your financial future! Let a professional financial planner help guide you in the process to successfully save for the future.
Our team at Montoya will help you organize all your financial information into an easy-to-understand format. We take the big picture into consideration and help you understand all aspects that may affect your retirement savings plan.
Our team at Montoya Financial Strategies has more than 30 years of experience helping our clients plan for their futures! Start your retirement plan today! Click our financial planning page to learn more or call us at 800-965-5554.