This is the time of year when we start preparing our taxes, and want to save money! I have the perfect solution for you. Reduce your taxes while Saving for your RETIREMENT!
So many of us women are behind when it comes to our retirement savings. Why? We take time off to be a mom, change careers, take care of our folks, etc. And we get paid less than men, 80 cents/dollar 🙁
There are several ways to save for retirement including an Individual Retirement Account (IRA), Spousal IRA, SEP IRA, Simple IRA, or 401(k) employer plan, to name the main ones. Which one is right for you depends on your individual situation.
We’ll talk about each of these on the Virtual Women Talk Finances Happy Hour, March 19th @ 5:30. Sign up Here.
The important point is to SAVE something for retirement. Better yet, make it automatic, and save every month, so you don’t have to come up with so much cash just before April 15th when taxes are due.
I often get asked, but how much should I save for retirement? The general rule is to save 15% of your earnings for retirement. Here are some savings guidelines:
- Age 30 = 1x Annual Income
- Age 40 = 3x Annual Income
- Age 50 = 6x Annual Income
- Age 60 = 8x Annual Income
- Retirement = 10x Annual Income
For instance, if you’re earning $75,000/year, by age 40 your goal is to have $225,000 in your retirement account, and $750,000 saved when you retire.
Now there’s more to determining if that’s the right “number” for you, but these are guidelines to get you started on your way to planning your financial freedom!
If you’re having a hard time saving for retirement, then check out my Master Your Money Lab that begins March 31st. Early registration discount is open until March 7th. You’ll learn how to track your expenses, budget, and save in alignment with your money values.