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How to make enough money for retirement

how to make enough money for retirement

Mark Riddix Mark Riddix is the founder and president of an independent investment advisory firm that provides personalized investing and asset management consulting. A broadly diversified, well-balanced portfolio of stocks, bonds and cash offers the best opportunity to maintain the necessary growth of capital needed while minimizing volatility over the long term. A couple, age Dig Deeper.

What’s Wrong with the 70% Rule?

Of course, many people in the U. To find out if your retirement income will be enough, you have to start by estimating your retirement expenses. There are various formulas to estimate retirement expenses, all of which are rough guesses at best. That percentage is based on the fact that some major expenses will go down in retirement—commuting costs and retirement-plan contributions, to name two. Of course, other expenses may go up vacation retkrement, for example—and, inevitably, healthcare. Many retirees report that their expenses in the first few years not only equal to but sometimes exceed what they spent while working.

Establish a Goal

how to make enough money for retirement
Illustration by Andrew Lyons. But figuring out whether you can afford to retire requires math, not magic, along with a thoughtful analysis of how you plan to spend your time and money. But this guideline is deeply flawed, financial planners say. Getty Images. During their early years in retirement, many retirees end up spending as much as or more than they did when they were working, says Jennipher Lommen, a certified financial planner in Santa Cruz, Calif. However, if you were to move to a lower-cost area, say, or stop supporting adult children, your living expenses could drop in retirement.


Start by estimating your future expenses

Right now, your retirement vision — formed by your specific needs, wants, attitudes and beliefs — rests in your mind, and it will undoubtedly change as your outlook and priorities change. How to make enough money for retirement Show. Invest Money Explore. Recent Stories. The good retirfment Advanced Search Submit entry for keyword results. Select link to get a quote. Borrow Money Explore. You can ask your employer about opportunities for continued part-time employment, perhaps with reduced responsibilities. Follow MoneyCrashers. Divide by the number of years you expect to live in retirement. Here’s a breakdown of how different types of retirement plans work. Market price returns do not represent the returns an investor would receive if shares were traded at other times. I’d Like to. Dedicate at least half of the new money to your retirement plan.

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