How Much Do You Need For Your Future?
None of us wants to think about our future; we want to live for the here and now. However, the here and now is what we need to think about because we’ll find the future upon us quicker than we were expecting it to be and suddenly we’ll find ourselves not having enough money to live in comfort, or at least in the manner we were living when we were earning our money.
There was a report on our local news a couple of weeks ago stating that most people who retire and had set up a 401K savings plan don’t have close to enough money to live the life they’re used to living. The average comes in around $149,000, which sounds like a lot of money until you think about just how long you might have to live off it. If you lived another 20 years that’s only around $7,500 a year, if that. Sure, you’d have your social security money, but with the way our government keeps playing around with it how secure do you feel in trusting them?
How much money do you need for your future? For each person that’s a different answer. What you need to do it think about how you want to live your future. For instance, you might need less money if you’ve paid off all your debt, which includes your home, before you retire. If you decide to sell your home and live in an apartment, depending on how much you could sell your home for, that could help drastically.
If you want to live a really simple life, you could probably get it done. If you were hoping to travel or help the grandkids with college, suddenly you need a bit more money.
The best thing to do is to contact a financial planner to help you make these long term decisions. I’ll caution you and let you know that many of them are going to try to talk you into getting insurance first, especially if you’re married, and that might not be a bad thing. However, it will be another expense you’ll have to plan for. They will help you figure out how much money you need, as well as figure out your risk tolerance. This is important because if you want a lot of money your financial planner might have to risk your money on deals that will work one day and burn on another day.
It’s always better to know than to not know. The earlier you can start, the easier it will be for you to save what you want, if not necessarily what you need.