An skilled San Mateo financial advisor may provide many helpful tips for retirement. This type of guidance is especially beneficial in light of the fact that pension plans and Social Security benefits do not provide nearly enough funds for a person to live on during the retirement years.
According to estimates of the U. S. Department of Labor, on average, an American will remain in retirement for 20 years. Officials also say fewer than 50 percent of adults calculate the amount they will need for support during those two decades. Unfortunately, many people do not prepare adequately for their retirement. During 2010, approximately 30 percent of all the workers who were offered employer retirement contribution options, such as a 401k plans, decided not to participate.
Professional consultants suggest several ways to prepare for the post-employment years. One of the most important tips is to start saving. Those who already have savings accounts should continue to save, try to increase the amount that is saved, and never withdraw funds from savings accounts.
To provide some meaningful insights into how a savings account can grow, financial advisers have broken down a scenario. If an individual deposits 5,000 dollars into a savings account each year, and earns 7 percent interest, she or he will have 28,754 dollars in the account after five years. After a period of 10 years, the account will grow to 125,645 dollars, and after 25 years, it will reach 316,245 dollars. If the deposits continue each year for 35 years, the account holder will have a balance of 691,184 dollars.
People should calculate their Social Security benefits. Typically, these funds are equal to approximately 40 percent of pre-retirement income. The website of the Social Security Administration offers a helpful retirement benefit estimation page.
A competent San Mateo financial advisor is likely to suggest their clients accumulate 70% to 90% of their pre-retirement annual income. This is the amount that has been specified as minimum levels that are required for one to maintain a pre-retirement standard of living.
According to estimates of the U. S. Department of Labor, on average, an American will remain in retirement for 20 years. Officials also say fewer than 50 percent of adults calculate the amount they will need for support during those two decades. Unfortunately, many people do not prepare adequately for their retirement. During 2010, approximately 30 percent of all the workers who were offered employer retirement contribution options, such as a 401k plans, decided not to participate.
Professional consultants suggest several ways to prepare for the post-employment years. One of the most important tips is to start saving. Those who already have savings accounts should continue to save, try to increase the amount that is saved, and never withdraw funds from savings accounts.
To provide some meaningful insights into how a savings account can grow, financial advisers have broken down a scenario. If an individual deposits 5,000 dollars into a savings account each year, and earns 7 percent interest, she or he will have 28,754 dollars in the account after five years. After a period of 10 years, the account will grow to 125,645 dollars, and after 25 years, it will reach 316,245 dollars. If the deposits continue each year for 35 years, the account holder will have a balance of 691,184 dollars.
People should calculate their Social Security benefits. Typically, these funds are equal to approximately 40 percent of pre-retirement income. The website of the Social Security Administration offers a helpful retirement benefit estimation page.
A competent San Mateo financial advisor is likely to suggest their clients accumulate 70% to 90% of their pre-retirement annual income. This is the amount that has been specified as minimum levels that are required for one to maintain a pre-retirement standard of living.
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Find a summary of the advantages you get when you consult a San Mateo financial advisor and more information about an experienced financial planner at http://www.lfsfinance.com now.
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