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How will you support yourself after you RETIRE?

By Holli Washington

Real Estate Agent 625292

May 15, 2014 07:50 AM

How will you support yourself after

you RETIRE?

Americans are living longer-often 20 or more years after retiring-making it a potential struggle to get by during your "golden years" if you're not prepared. A common rule of thumb is that you'll need at least 70-80% of your pre-retirement income annually after you stop working. Unfortunately, the majority of Americans aren't saving nearly enough. Nearly half of workers between ages 48-65 have saved less than $25,000.

Preparing for retirement - top tips:

Make a plan
Determine how much you'll need to save. You can easily find online calculators that will help you figure out how much you need to set aside to reach your retirement goal. Create a budget of your expenses and include your savings contributions as a monthly expense. And remember -
the sooner you start, the more time your money has to grow.

Contribute to a 401K
If your employer offers a 401(k) plan, sign up and contribute at least 10 percent if you can. You'll have an immediate tax deduction and your company may include a matching contribution. Over time, compound interest and tax-deferred growth on your savings will make a big difference in size of your nest egg.

Start an IRA
Build your savings by opening a traditional IRA or a Roth IRA. As of 2013, you can contribute $5,500 a year or $6,500 if you're over age 50. Both IRAs offer significant tax benefits and you can easily set them up with automatic deductions from your savings or checking account.

Diversify your portfolio
Don't put all of your eggs in one basket. To maximize your returns while minimizing risk, be sure to spread your investments across many companies and asset classes. If your retirement plan is with your employer, check for funds that automatically invest your money in a way that's designed for your age and investment objectives. If you invest on your own, be sure to talk with a financial planner to make the right choices for reaching your goals.

Pay off debt
This is especially important as you get closer to the end of your working life. When you create your spending plan, prioritize the debts you want to pay off first. Start with higher-interest credit cards, then student loans, auto loans, and mortgages.

Need a positive, helpful partner for buying a retirement home or selling:

HIRE ME- YOUR NEIGHBORHOOD EXPERT

Trusted resource for answers about the process
Innovative marketing strategies
Expertise about neighborhood features
Ability to target home searches
Strong negotiation skills
Support through the closing and beyond

COMMUNITY INFORMATION

Understand the difference between "listing prices" (what sellers are asking for) and "sold prices" (what buyers are willing to pay).

By comparing these price trends, you'll have a good idea of where the market is heading. The median listing and sold property prices are calculated based on the market activity each month.

Some sales are not immediately available from public records. As they become available, the data are updated.

THANK YOU FOR VISITING!!!