Tag Archives: retire

How Much Money Do You Need to Retire?

retirement

Asking yourself how much money you need in order to enjoy a comfortable retirement is difficult. Although it may be a challenge to figure out how much money you’ll need, a true monetary amount is different for everyone. It depends on factors such as where you’ll live, how healthy you are, and what you want to achieve in retirement. For example: travel or try exciting, new adventures. Ultimately, it depends on your lifestyle. But, here are some general guidelines to help you refine your answer.

Figure out your living expenses.

It is best advised to figure out how much you’re actually spending now. Create a budget, (if you haven’t already) to keep track of all your expenses. Doing this gives you the opportunity to see how much you’ll potentially need for your future.

Aim for 80 percent.

Financial experts suggest that you will need at least 80 percent of your income during retirement. For instance, if your salary was $75,000 per year, you may need $60,000 per year when you retire. That amount will vary depending on what you plan to do for retirement — whether you plan to take vacations or retire elsewhere, but 80 percent is a good start.

Use an online calculator.

If you’re having trouble trying to figure out estimates in your head, try an online calculator. Often times they will be able to offer estimates for how much you need to retire. It will also be in your best interest to try a few different calculators because each of them vary on the information it collects — see which one works best for you!

Have retirement checkpoints.

You will always want to make sure you’re on the right track with how much you’re saving. It’s important to know where you stand, and what could be done to further your success. Checkpoints allow you to see how you’re doing based on the progress you’ve been wanting to make.

Save Save Save.

The best thing you can do is save — start early and stay consistent. Amounts will differ based on income, but if you have extra income coming in be sure to deposit it right into your retirement savings account. By saving at a reasonable or consistent rate, you’ll be able to keep an open mind about your retirement and hopefully avoid any situations where you fall short of money.

Saving for retirement may come as a challenge, but with these general guidelines, we hope to help you figure out how much you need to save for a comfortable retirement. Save what you can and decide what you want for your retirement lifestyle. We’re happy to help with any financial questions you may have, so contact us today!

Deep Cleaning for Retirement

clean

It’s finally time! You’re getting close to taking a new path in life – but do you know where to begin? Retirement is an ideal time to declutter, as you may be downsizing or moving locations. Heartland Bank offers a few ways you can deep clean for retirement, so you aren’t left with a mess!

Turn Big Tasks into Smaller Ones

When beginning to downsize to a different home or clean out old tax returns, it is easy to get overwhelmed with the process. Try starting small instead of tackling everything at once. For example, when moving your clothes, start with winter outfits and move on to summer pieces once those clothes have been taken care of. A good rule of thumb is to donate any clothing you haven’t worn for a year, only worn once or never wore at all.

Drop the Small Expenses

Say goodbye to magazine subscriptions, cable, memberships, and any other monthly expenses that have been draining your account. If you really like your gym membership or can’t live without People magazine, you can keep it – just be sure to cut the costs on another item so you aren’t continuing to lose money. Your average cable can cost around $85 – 100 a month, so that is always a safe cost to cut when you have cheaper options such as Netflix and Hulu available.

Shred Old Documents

Go through old tax returns, pay stubs, important documents and any other papers you have been hoarding. Find the ones that you may need to keep and toss the rest. Be sure to shred all documents, as identity theft is on the climb. This will make you feel refreshed and help make your switch into retired life a little easier.

Change your Insurance Coverage

Once retired, you may have different options and benefits you can take. Talk with your bank about new savings options or look at different deals certain companies give retirees. Continue to review plan choices each year to find better pricing options. Insurance can be tricky once you don’t have your employer to go through, so be sure to go through all options slowly and ask questions when needed.

We believe these tips are a great way to start off your retirement! Cleaning out the clutter and preparing for this journey will only make the process easier. If you’re wondering what the next step is for you financially, feel free to give us a call or stop on in! We’d love to discuss your banking retirement options with you.