An experienced San Mateo financial advisor can offer her or his clients some very valuable retirement planning tips. This guidance can be especially helpful since pension plans and Social Security benefits fall far short of providing enough income to support a person throughout her or his retirement.
According to estimates of the U. S. Department of Labor, on average, an American will remain in retirement for 20 years. Officials also say fewer than 50 percent of adults calculate the amount they will need for support during those two decades. Unfortunately, many people do not prepare adequately for their retirement. During 2010, approximately 30 percent of all the workers who were offered employer retirement contribution options, such as a 401k plans, decided not to participate.
Knowledgeable advisers have suggested some basic methods for preparing for the years following employment. The most critical step is to open a savings account. Workers who have already opened these accounts should continue saving, increase the savings deposits when possible, and avoid taking funds from the account.
To help give meaning to the value of a savings account, some professionals have offered the following example. When a person puts $5,000 into a savings account annually, with 7% interest, he or she will have a balance of $28,754 after 60 months. Following 10 years, this account will reach $125,645, and following 25 years, it will be at $316,245. Continuing to deposit $5,000 for an additional decade will result in a balance of $691,184.
A person's expected Social Security benefits should be calculated. In general, these federal funds are equivalent to about 40 percent of a person's pre-retirement income. The official Social Security Administration's website has a retirement estimator page.
The San Mateo financial advisor often suggests that people accumulate 70 to 90 percent of their annual incomes for each year of retirement. This proportion has been identified as basic levels needed for a person to maintain her or his standard of living from before retirement.
According to estimates of the U. S. Department of Labor, on average, an American will remain in retirement for 20 years. Officials also say fewer than 50 percent of adults calculate the amount they will need for support during those two decades. Unfortunately, many people do not prepare adequately for their retirement. During 2010, approximately 30 percent of all the workers who were offered employer retirement contribution options, such as a 401k plans, decided not to participate.
Knowledgeable advisers have suggested some basic methods for preparing for the years following employment. The most critical step is to open a savings account. Workers who have already opened these accounts should continue saving, increase the savings deposits when possible, and avoid taking funds from the account.
To help give meaning to the value of a savings account, some professionals have offered the following example. When a person puts $5,000 into a savings account annually, with 7% interest, he or she will have a balance of $28,754 after 60 months. Following 10 years, this account will reach $125,645, and following 25 years, it will be at $316,245. Continuing to deposit $5,000 for an additional decade will result in a balance of $691,184.
A person's expected Social Security benefits should be calculated. In general, these federal funds are equivalent to about 40 percent of a person's pre-retirement income. The official Social Security Administration's website has a retirement estimator page.
The San Mateo financial advisor often suggests that people accumulate 70 to 90 percent of their annual incomes for each year of retirement. This proportion has been identified as basic levels needed for a person to maintain her or his standard of living from before retirement.
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