Tips And Retirement Savings By Age From Your Miami Financial Consultants

Miami financial consultantsMiami financial consultants – Retirement, for most people, seems so far away. We think we’ll be working forever, especially if we have a family and the obligations that typically come with that: The kids’ college tuition, weddings, spoiling the grand children and so on. Stopping work really doesn’t seem like a reality. But we all know we need a retirement savings fund, to help us live comfortably when we can’t bring in a paycheck anymore.

The Miami financial consultants know that retirement savings is a scary concept for many, it not forces them to think about the future and deal with uncertainty, but also skimp on the possible pleasures of today for a better tomorrow. That’s a hard thing to do in this age of instant gratification. There’s also many concepts to understand to save for retirement, from understanding tax rules to handing paperwork to perhaps dealing with investment companies.

Retirement savings also look different by age. According to a Government Accountability Office report, the average retirement savings of Americans between 55 and 64 years old is at $107,000. For those in their twenties, who just entering the job market and dealing with student debt, retirement savings aren’t top of mind. However, a 2015 Transamerica survey reported that the average twenty-something has about $16,000 in savings. If you’re in this age group, the Miami financial consultants recommend you contribute to a 401K plan to save for retirement. If you don’t have access to a company retirement plan, try to save 15% of your income after taxes to get into the habit of saving for your future.

Life in our 30’s may offer a bigger paycheck, but it also offers bigger responsibilities.

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Some are married or starting a family, some are buying their first home, while others are starting their own business. Student loans may not all be paid off, and expenses seem to pop out of nowhere on a daily basis. The Miami financial consultants learned that thirty-somethings have about $45,000 saved.

One way to make sure you’re contributing to your retirement savings is to follow a tight budget. Make it a family obligation so everyone understands the household’s goals. This doesn’t mean you don’t live well, it just means financial priorities are top of mind. Also, the Miami financial consultants suggest you choose low cost investment funds that don’t have high commissions. Remember, compound interest doesn’t just apply to returns, it also applies to expenses. For example, $10,000 with an expense ratio of just 1% means you’re paying $100 in fees every year. In order to minimize cost, look for commission-free investments or hold on to your investments instead of making frequent trades.

For those who have hit forty retirement savings should maximize 401k contributions.

financial consultantsFor those who have hit forty, the statistics for retirement savings don’t look as good even though student loans are already paid. Experts say you should already have three times your annual salary by this age. But the average retirement savings according to a 2017 report, is only at $63,000. At this point though, you should maximize 401k contributions.

For this year, the Miami financial consultants remind you that the maximum in an IRA is $6000. If you’re looking to invest, make sure you park your money in funds you understand. Don’t get emotional about it, just do you research and bet on something that’s within your financial wheelhouse.

Fifty-year olds are closer to the retirement age, with increasing expenses.

Save for Retirement

From medical bills to home repair, children’s tuition and more, money is constantly needed to advance. By this time, the average savings to retire are at about $117,000 but many are falling behind. Make sure to take advantage of the catch-up contributions and consider downsizing in general. Remember, stock options, assets you’ve accumulated over time are also part of your retirement savings.

For more help on how to save for retirement, consider calling your Miami financial consultants at 305.868.7620.