Here is a trick to see if you are ready for retirement. This is just a rough estimate, but it gives you a sense how you are doing.
Using your current salary and your age, use the following formula.
If you are 30 years old, you should have 1 X your current salary saved in your retirement account. Therefore, if you make $50,000 a year, you should have $50,000 saved.
If you are 35 years old, you should have 2 X your current salary saved in your retirement account. Therefore, if you make $60,000 a year, you should have $120,000 saved.
If you are 40 years old, you should have 3 X current salary saved.
If you are 45 years old, you should have 4 X current salary saved.
If you are 50 years old, you should have 6 X current salary saved.
If you are 55 years old, you should have 7 X current salary saved.
If you are 60 years old, you should have 8 X current salary saved.
If you are 67 years old, you should have 10 x current salary saved.
Was that a look of panic in your eyes? Don’t worry, most people are way behind on their retirement savings.
Capital Budget Strategies, LLC, Austin’s best Money Coach and Financial Advisor, will help you organize your finances and set you on the path to financial independence.
For only $149, we will work with you to determine your Net Worth, set up an Emergency Fund, create a Monthly Budget and build a Snowball Debt Reduction Plan.
Give us a few hours in your office, your home or some other quiet place and we will guide you through all the steps in our 2018 Financial Workbook. We can meet you during the day, in the evening or on the weekend.
Capital Budget Strategies, LLC is in the Financial Education business, we do not sell any financial instruments, work on commission or recommend what fund to buy.
But we will help you start your journey to a great retirement!
Question or Comment? Enter it below.