A professional San Mateo financial advisor may offer his or her clients very helpful retirement planning tips. This advice can be particularly useful since Social Security benefits and pension plans are falling way short of being able to provide adequate income for a person during his or her retirement.
Officials with the United States Dept. Of Labor, have estimated the typical American will live in retirement for about two decades. They have also estimated fewer than one in two working adults have calculated the amount they will require during those 20 years. Unfortunately, the majority of people are not properly preparing for their post-employment years. In 2010, just three in ten workers chose to participate in their employers' matching contribution plans, such as the 401k.
Professional consultants suggest several ways to prepare for the post-employment years. One of the most important tips is to start saving. Those who already have savings accounts should continue to save, try to increase the amount that is saved, and never withdraw funds from savings accounts.
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.
Officials with the United States Dept. Of Labor, have estimated the typical American will live in retirement for about two decades. They have also estimated fewer than one in two working adults have calculated the amount they will require during those 20 years. Unfortunately, the majority of people are not properly preparing for their post-employment years. In 2010, just three in ten workers chose to participate in their employers' matching contribution plans, such as the 401k.
Professional consultants suggest several ways to prepare for the post-employment years. One of the most important tips is to start saving. Those who already have savings accounts should continue to save, try to increase the amount that is saved, and never withdraw funds from savings accounts.
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.
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