If you want to retire someday – you need to start thinking about where your retirement income will come from.
Unfortunately there are no retirement fairies that will hand you money when you feel like retiring.
The Social Security Administration used to be the retirement fairy; but that is becoming more and more unreliable as a source of retirement income.
The retirement investment vehicles that are becoming more and more reliable as a source of retirement income are 401k retirement plans and IRA’s.
401k retirement accounts and IRA’s, are both retirement type accounts and are available for your investments; but you need to make the commitment. No one will invest for you. No one cares about your retirement as much as you do. No one can develop the discipline to invest on a regular basis, but you.
Your Retirement Income Sources:
401k & IRA Investments.
- When you retire, your earned income comes to a dead-stop.
- If you don’t plan on working during your retirement, you will need another source of income besides your pay check.
- 401k retirement accounts and IRA’s may be your only source of retirement income.
- 401k’s and IRA’s are available to everyone who earns a pay check.
- Your 401k & IRA accounts will most likely make up the majority of your retirement investments.
- Social Security will most likely not be available or if it is, it will not be enough to survive on.
- If you ever want to stop working, you need to invest as much as you possibly can while you are working.
- It will not be how much you earned, but how much you kept that will make the difference when you get ready to retire.
- If you have not invested enough by the time you have reached your retirement years, guess what, you have to keep working.
- You want to know with some certainty that your investments will be enough.
How Much Retirement Income Will You Need?
- How do you know how much money you will need in savings before you are able to retire?
- How do you know if your current retirement investments are on track to get you to retirement?
- How do you know if your retirement investments will be enough to last throughout your entire retirement?
- Retirement calculators can be a very helpful financial tool.
- With retirement calculators you can establish a base to work from.
- Retirement calculators will show you how much retirement investments you will need to do in order to have enough retirement income.
To get your projections as accurate as possible you will need to be perfectly honest when working with the retirement calculator.
If you fudge the numbers, you will have an inaccurate picture of what it will take to get you to retirement. If you fudge the numbers, you may not save enough to last your entire retirement.