Planning for retirement can be quite a daunting task, yet with a clear plan and steps to follow, you can achieve your retirement goals. This page will guide you through calculating your target retirement savings, understanding the power of compound interest, managing your debt and effectively planning to reach your retirement number.
Investing in the stock market can seem risky, especially during times of volatility. However, history has shown that, in the long run, the stock market is a safe and reliable avenue for building wealth. Even for those who have had the bad luck to invest at the worst possible time, the long-term trend of the stock market is upwards. To see this concept in practicality, read about Bob, the World's Worst Market Timer.
JL Collins also explains why it's safe to invest everyday very well with the links below:
Or maybe you think now is a bad time to invest and you need to wait and don't like to read, here is some Youtube:
Heres more Youtube of Bob and his poor market timing, incase reading the blog above is hard:
"The four most dangerous words in investing are: 'this time it's different'." - Sir John Templeton
Understanding the power of compounding is key to maximizing your retirement savings. In essence, compounding allows your investments to grow exponentially over time, with returns being earned on both the initial investment and its accrued earnings. You can learn about the magic of compounding by using our compounding calculator. Note: our Compounding Calculator gives walks you through the meaning of all the terms!
Input the amount you currently save each MONTH: $
"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it." - Albert Einstein
Knowing your retirement target number gives you a clear figure to focus on. It represents the amount you need to sustain your desired retirement lifestyle. By identify your target, you'll know exactly what you're working towards and can track your progress more effectively. You can calculate your retirement target number with the Find Retirement Nestegg Goal.
Input your retirement nestegg target:
"A goal without a plan is just a wish." - Antoine de Saint-Exupery
Becoming aware of the impact of your debt on your financial situation is an important step in achieving your retirement goals. Debt, especially high-interest credit card and loan debt, can significantly hinder your ability to save for retirement. By tabulating and tackling this, you can regain control over your finances. Learn about how to manage your debts auto/toy/school & credit card calculator.
Enter your total MONTHLY credit card, auto, mattress, loan debts etc: $
"Debt is like any other trap, easy enough to get into, but hard enough to get out of." - Henry Wheeler Shaw
The final step involves concretely planning to achieve your retirement number. This involves setting monthly and yearly savings goals, and incorporating projected Social Security income. With proper planning, your dream retirement can become a reality. You can start working towards achieving your retirement number here by using our Retirement Savings Plan
Input your required MONTHLY savings number that you calculated above: $
"The best time to start thinking about your retirement is before the boss does." - Unknown
"Don't simply retire from something; have something to retire to." - Harry Emerson Fosdick
| Retirement Plan Summary | ||
|---|---|---|
| Category Description | Monthly | Yearly |
| Retirement Nest Egg Goal | $0 | |
| Total Debt Payments | $0 | $0 |
| Currently Saving Each | $0 | $0 |
| Required Saving Each | $0 | $0 |
| Missing Savings Needed | $0 | $0 |
Is there a path for me? To embark on your investment journey and grow your retirement savings, it's essential to gain knowledge about investing. Here are some informative resources that i wished i had when i started investing!:
The Money Guys offer engaging financial advice through their videos and tackle common retirement and investing questions in a fun, interactive way. Watch their videos on "How to Become a Millionaire!..." for some insight on how to get to 1 million and make you a believer there is still a way to get there:
JL Collins: author of "The Simple Path to Wealth," provides a compact overview of how to manage your finances yourself. His book and the free blog series are valuable resources, but you can start with this Talks at Google on Youtube:
Dave Ramsey: a bit controversial but does have the absolute best plan to get out of debt quickly! He has clear steps and actions to take that millions have completed and gotten out of horrible debt.
2 Standout books: The Richest Man in Babylon book by George S. Clason from 1926 that gives financial advice through a collection of parables set 4,000+ years ago, in ancient Babylon. The book is regarded as a classic of personal financial advice. While it can be hard to read its short at 100 pages but it helps show there is a path to wealth, just need to forget about complicated investment concepts and think bigger. Think of this as an eye opener.
Millionaire Next Day by Thomas J. Stanley is a FAMOUS book about one of the first great studies on millionaires. This book is an eye opener on how "rich" people live, buy items, save and etc. If you have never researched this before it is a huge eye opener how your AVERAGE wealthy person acts.
John Bogle, the founder of the index fund, is considered one of the most influential figures in the investment world. His advocacy for index funds and low fees has revolutionized the industry and benefited countless investors. Learn from his investment advice in this video, may be to in the weeds for some and thats fine:
(NSFW) For a humorous yet enlightening take on attaining financial independence, watch JL Collins' skit based on a scene from the movie "The Gambler." Note: recommend you watch his full length videos first before you watch his 1.30min clip:
F U Money is a great stop gap till you gain enough retirement money. F U Money lets you risk moving jobs, take that extra schooling or cert, say no to your boss and not care what happens. You want to live life from this position. Whats F U Money, 1 months expenses, maybe 6 months, maybe 3 years... its different for each person. Something that can be reached much quicker and a great first short to mid term goal.
"Invest in yourself, you can afford it, trust me." — Rashon Carraway
Creating a detailed action plan is crucial to achieving your retirement objectives. Here's how you can outline your plan:
"The biggest risk of all is not taking one." — Mellody Hobson
Choosing whether or not to engage a financial advisor depends on several factors including your confidence in making investment decisions, the complexity of your finances, and your personal preference in managing investments, THERE IS NO ONE ANSWER!:
There is no right answer here. Personal finance is personal. If you do want an advisor make sure to interview at least 3, find one who explains and teaches what they are doing. Not someone who tells you what they are doing.
"The investor’s chief problem — even his worst enemy — is likely to be himself." - Benjamin Graham
You have to act sometime. Stop reading. Start acting.
..Log into 401k/IRA and up contribution!
...Apply for that job or school now!
....Pay off that loan, or pay off a chunk right now!
.....Cancel that subscription and auto draft the money to savings or your IRA!
......Log into 401k/IRA and make sure it's actually invested in the market and not all in money market/bonds?!
""Do not save what is left after spending but spend what is left after saving." — Warren Buffet
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