Posted On: November 23, 2016 by Exchange Bank of Northeast Missouri in: Personal Finances Reitrement Savings
Did you know one in three Americans have no retirement savings? This shocking statistic is one of many that reveal how unprepared many Americans are when it comes to their retirement. If you have yet to hop on the savings train, there may be some opportunities to catch up. Today our team at Exchange Bank of Northeast Missouri is here to clarify some of the most common retirement assumptions:
TRUE: The sooner you start saving the better.
FALSE: If you don’t start saving by 25 you’ll be behind.
Starting your savings early in life gives you numerous benefits when it comes to accumulating your retirement nest egg. While it is important to start as soon as you are able, some things, like paying off debt, may need to come first.
TRUE: You need to save enough to live off your interest.
FALSE: $1,000,000 is the ideal savings for retirement.
We always recommend working with a professional financial adviser when planning for your personal retirement. Depending on your current living standards you may require more or less than the commonly promoted $1,000,000 plan. If your current income is $40,000, and you can live comfortably on less than $3,500 a month, you may be able to get by with saving less than $875,000.
TRUE: Diversifying your retirement plan can help significantly.
FALSE: All you need for retirement is your 401(k).
While utilizing your company’s 401(k) is a great step in the right direction, this savings option is not the only account you should rely on. Working with a dedicated financial adviser, you can determine what mixture of stocks, bonds, and other investments will help you make the most of your earned interest. During your younger years you may be more apt to try some riskier investment options. However, as you age you may prefer having some liquidity in your assets to ensure you have access to any funds you may need.
No matter what your age, if you want to begin saving for your retirement we would love to help you get started! With our interest-earning IRA and CD options, we have a variety of products for all your savings needs. Stop in and speak with one of our experienced representatives today!
Exchange Bank of Northeast Missouri
Member FDIC
Equal Housing Lender