“When you are worried about how much money in the bank, start by worrying about having no money in the bank,” urges retiree Jane Wagna, a planner and financial consultant. “And get that anxiety out of the way. It is going to take money to retire, and it will take time. You may be able to add a retirement plan when you start working, but, until you reach it, you don’t want to rely on just your Social Security.” Even if you have been laid off or have no pension, “Retirement planning involves looking ahead two to five years at what might be a very good income.”
Putting away savings for retirement is part of the act. “You have to make yourself savings, and you have to set them aside,” says Wagna. “You have to figure out how much you have to live on every month, no matter what expenses you have. That is the only way to determine how much you need to set aside savings for.” And it is part of the act of putting your money away for your future.
Most people who are younger than fifty years old don’t realize how important an emergency savings account is. You might be working toward a pension, and your employer might give you a retirement plan that matches what you contribute. But even if you don’t have that kind of pension, you probably have savings that you are using, either through your paycheck from investments, or from the interest on your current mortgage payment. The point is, if you have an emergency fund, you are prepared for those unexpected emergencies.
But if you have no savings, and you rely on income from your job or pension to meet your living expenses, then you are living under the threat of losing your home or being evicted. When you are young and have no debt, your savings are usually sufficient for you to cover the living expenses for six months or more. But if you get behind on bills or debt, you can fall into a very bad financial situation. Your bills go unpaid, your minimum monthly payment keeps going up, and you can’t afford the extra payments. An emergency fund gives you the peace of mind that you will be able to catch up before your situation gets worse.
If you are older, and you want to secure your future, but you don’t know how to go about doing so, you should think about putting aside some savings for retirement. Even if you are not planning to retire, savings plan gives you a way of having some money to go with your pension and social security. The key to achieving financial goals is setting reasonable and achievable goals. You want to save enough money to allow you to buy your house, pay for your children’s college education, and build a nest egg for your later years.
You don’t need to sit down and calculate how much you will have to save for retirement at different ages. In fact, you can look at your current expenses and use this as the base for calculating what you need for your future expenses. Once you have determined what you need for retirement, you can multiply this number by six months for today’s date. For example, if your expenses include food, housing, clothing, gas, and entertainment, then you would have to estimate how many months of living cost you have at this time. Then, if you are following the six month savings plan, you would add twelve months to your life.
With the calculator, you can plug in your life expectancy, annual income, and other numbers to get the amount of money you would need at the end of every year to fund your retirement savings. With your life expectancy, you can also plug in the number of years you plan to live, to see if you need more money saved for your golden years. Your monthly budget will show you how much you need to save for the future. If you have any extra money, you should put it into the smartvestor pro account to grow tax-deferred until you withdraw it.
The calculator is very useful for Americans because they don’t like to think of things that may not be there when they are ready to retire. Many of them are afraid to set goals or save for things for their future. This calculator allows them to have a better idea of their savings needs and goals so they will have enough money to live on when they stop working. Smartvestor Pro has helped millions of Americans to save money for their retirements. This is a tool that American should take advantage of to help them through the rough times of their lives.