14.12.2019 21:00:00

Having Trouble Saving for Retirement? Do These 4 Things Now

Reality television shows challenge contestants to lose weight, get fit, survive in remote locations, and cohabitate with strangers. But where is the show that tasks people with a more practical skill, like saving for retirement? Oh, wait. That would be boring.Saving is not a topic that inspires the masses. Research from Northwestern Mutual estimates that one in three Americans has less than $5,000 in savings. And you don't have to be a financial advisor to know that $5,000 is well short of what a household needs to retire.If you're struggling to set aside money for retirement, consider this. Reality show contestants are willing to live in a bugged house with strangers for a mere chance of winning $500,000. What if you could complete a different challenge for a guaranteed outcome of $500,000? All you have to do is invest a few hundred dollars every month in a retirement account for a few decades. More specifically, to accumulate $500,000, you'd need to save $475 in your retirement accounts monthly for 20 years. And those funds would need to earn 7% annually -- which is doable, considering that 7% is a rough approximation of the stock market's average long-term growth, adjusted for inflation.Continue reading
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