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.
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 help people understand how their savings accounts can grow, advisers offer the following scenario. When a person deposits 5,000 dollars in his or her savings account annually, with an interest rate of 7 percent, he or she will accumulate 28,754 dollars after a period of five years. After 10 years, the savings account will increase to 125,645 dollars, and following 25 years, it will be at 316,245 dollars. If the person continues depositing money for 10 more years, the account will be at 691,184 dollars.
It is important to calculate the anticipated amount of Social Security benefits. This type of funding usually equates to 40% of a worker's income during the pre-retirement years. A helpful estimation page is available on the website of the U. S. Social Security office.
A San Mateo financial advisor may recommend that a person accumulate about 70 to 90 percent of her or his annual income for each retirement year. This amount has been defined as the minimum levels required for people to maintain their pre-retirement standards 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.
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 help people understand how their savings accounts can grow, advisers offer the following scenario. When a person deposits 5,000 dollars in his or her savings account annually, with an interest rate of 7 percent, he or she will accumulate 28,754 dollars after a period of five years. After 10 years, the savings account will increase to 125,645 dollars, and following 25 years, it will be at 316,245 dollars. If the person continues depositing money for 10 more years, the account will be at 691,184 dollars.
It is important to calculate the anticipated amount of Social Security benefits. This type of funding usually equates to 40% of a worker's income during the pre-retirement years. A helpful estimation page is available on the website of the U. S. Social Security office.
A San Mateo financial advisor may recommend that a person accumulate about 70 to 90 percent of her or his annual income for each retirement year. This amount has been defined as the minimum levels required for people to maintain their pre-retirement standards of living.
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