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Retirement

6 Responses to “Retirement”

1. creditcardfree Says:
   September 17th, 2012 at 03:30 pm 1347895819
   1347895819
   It adds up! The less debt you have the more you can put towards retirement. I've noticed that once you get to the first $100K in retirement that compounding takes a greater hold and earns you even more on that money you invested. I bet you will make it. You definitely won't if you don't try!

2. CB in the City Says:
   September 17th, 2012 at 03:49 pm 1347896990
   1347896990
   I understand why they say you need so much, but it is really demoralizing for people who don't have much to start with. Awareness is key. Pay off your debt, and when it's gone, start putting more into your 401K. You don't have much debt and you have 30 years. You're in pretty good shape, actually. Don't focus on that huge number, focus on what you can put away.

3. Bob B. Says:
   September 17th, 2012 at 03:58 pm 1347897526
   1347897526
   I'm just guessing that you're about 10 years younger than I am. Ten years ago, I was in about the same boat as you are, except you have less debt than I did! I will admit, though, that I have a nice company match on my retirement.
   
   What most would say to answer your main concern, and to go along with what creditcardfree wrote, continue with your current retirement allocation, live frugally, and eliminate CC/Student Loan debt as quickly as you can. Once debt is paid off, allocate 20% of your earnings to retirement.
   
   That should get you to your goal in 30 years.

4. Petunia 100 Says:
   September 17th, 2012 at 10:19 pm 1347920341
   1347920341
   Try not to be frustrated by that big number. Just do the best you can. Budget, reduce debt, and work towards the day you can bump up those retirement contributions.
   
   I try to focus on the positive, that having something for retirement is much better than having nothing. If I fall short of my goals, I will just have to re-think my plans. I will work longer, or continue to work part-time, or take a reverse mortgage, or move to a country with a much lower cost of living, or move into a studio apartment, or something else which has not even occurred to me yet.
   
   And it is absolutely true, those small amounts do add up.
   One painless way to boost your retirement account is to make certain you are keeping your investing costs as low as possible. Also, make certain that your investment mix is reasonable for you.

5. Shiela Says:
   September 18th, 2012 at 01:43 am 1347932582
   1347932582
   I agree with everyone, you probably just need to look it monthly. Monthly you will only need to save around $1200, assuming you can get 5% return with 3% inflation rate. In 30 years you should be very close to that number.
   
   Just one step at the time. First is to get rid of the debt while living frugally.
   
   Good luck. It can be done.

6. snafu Says:
   September 27th, 2012 at 10:42 pm 1348785769
   1348785769
   Merrill Lynch and companies like that who profit from your retirement savings target their advertisements for people to save out of fear. In our parents generation, employers offered defined pension plans by with holding 7% of all earning and investing in plans offered by companies like Merrill Lynch. It's important to set up a retirement plan and contribute at least 5% ...better 12 % of all income, no matter the source. Over 30 yrs. it adds up and compounding makes a huge difference.
   
   It's critical to make a start and do an automatic deposit to your own pension plan no matter how small the sum to start.

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