(WTNH)– Many of us dream about what kind of life we want to have in retirement, but we aren’t sure exactly how to go about saving for it. We are stretching your dollar with some tips from an expert to help you reach your goals.
If you’re not approaching retirement age yet, you may not be too concerned about planning for it yet, which financial advisor Roger Cowen says is the #1 mistake people make. He says it’s important to start the plan as early as your 20s.
“If you’re in your 20s or 30s, you probably want to develop an emergency account first, save a little money. Saving a little becomes a lot of money eventually. You probably want to start a life insurance portfolio,” said Cowen.
In your 30s and 40s you may want talk to an expert about optimizing growth. After that, it becomes about preserving.
“In your 50s and 60s, the goal is to provide income for yourself and preserve the money for the length of your retirement,” said Cowen.
If you’re not saving much right now, he suggests starting with roughly $100 a week or 10% of your annual income. And make sure you’re meeting whatever your employer is willing to match! That’s free money that will get you to your goals faster.
“I would say that you need a minimum of $500,000 and a pension if not more based on today’s cost of living,” said Cowen.
That number will be higher depending on your lifestyle goals and spending habits. And the most important step, leave the money alone!
“That’s like putting money in the cookie jar, just keep putting it in. The goal is to keep your hand out of the cookie jar,” said Cowen.