Saving for Retirement



Everyone wants a little affirmation of financial security especially when it comes to their retirement savings. When it comes to saving for your retirement there is no time like the present, in fact you should actually start a few decades ahead if possible.

Sometimes it’s hard to know where to start when it comes to retirement and deciding your imminent future. Don’t worry there are a few easy ways to get started that help you clear an easy path to financial security for your retirement future.

Your main goal when you save for retirement should be to allow you to feel financially secure during your later life.  I personally recommend building a stock portfolio that allow you to live on the dividends.  This allows you to feel financially secure no matter how long you live because you are only spending the dividend.  Your stock portfolio remains the same.

How do you get started saving for your retirement?

  • Decide to open an account for your retirement savings and investments.
  • Research what type of investments are good for your retirement plans.
  • Open an account online.

A little advice

Here are some ideas to keep in mind when planning for the future and your retirement goals.

Try to start saving for your retirement as early as possible in life. The money you save in your 20:s will be worth a lot more when you retire then the money you save in your 40s and 50s.  Small amount of money can grow into a large retirement fund thanks to the power of compound interest.   Start saving as early as possible. The earlier you start, the less you need to save each year.

The average age people are expected to retire is between 66 and 67. However, the actual age at which people usually do retire is more around 61.

For now, focus on:

Does your employer offer a plan where they match the money you save in your retirement fund.  Many companies do.  Make sure that you take advantage of this and save as much as the matching plan allows you to get. You will get USD2 in your account for every USD  you save. This is free money so don’t let it pass you by. Compound interest will allow this free money to be worth a lot when it is time to retire.

You should try to save 15% a year. If you are not able to do that then the most important thing is that you save something.   Try to increase your savings each year until you are able to save the 15% a year.

Some important questions to ask yourself when thinking about your retirement

*Two big factors weigh heavily on your retirement savings needs: how many years you’re going to spend in retirement and how much you’re going to need to withdraw each year.

Final Checklist

It’s a rule of thumb to match the money in your employer plan.

If your employer offers a retirement plan like an ISK, a 401(k) or 403(b) plan) and will match your contributions up to a certain percentage, make sure you get the full amount of free money that’s available to you.

How long should you plan to be in retirement?

Plan to spend at least 30 years in retirement, longer if you think you’ll retire early. Luckily modern medicine and medical advances are consistently extending the average lifespan.