Signs to be aware of for retirement planning
When it comes to retirement, we all know that it is an expensive milestone to reach. What can be helpful during planning is having milestones and measurements to tell us if we are doing a good job. If you are looking for some measurements, lets look at 4 helpful measurements you can use to help plan for your retirement.
- Your retirement contribution
Your retirement contribution is a major metric to figuring out how comfortable your retirement will be. This can be looked at in 2 ways. The first is the raw contribution. To a certain extent, you can eyeball this number and have a good sense if its enough. If you are only contributing $20, thats very clearly not going to be enough. Another way to look at it is to examine your contribution as a percentage of your income each month. If your contribution is under 20% than you are most likely not doing enough.
2. When do you plan to retire
This metric will be an important guide as to when you begin withdrawing your assets for retirement. If you plan on retiring in 40 years, there is a lot of time before that happens so your contribution amount may be lower. For most people there is a need to catch up on retirement savings so your contribution will need to be higher. Time in the market greatly influences your asset’s ability to grow, so the more time…
