Tuesday, April 15, 2014
The path to retirement can be difficult. Here are eight rules of the road that can help you stay on track towards achieving your long-term goals:
- Try and save 10-15% of your income each year and make sure and get any company match.
- Don’t be too risk averse with your investments.
- Maximize the use of tax-advantaged accounts like IRAs, 401(k)s, HSAs, or deferred annuities.
- Plan on needing 85% of your preretirement, after-tax income when in retirement.
- Aim to earn at least eight times your ending salary before retirement.
- Construct a financial plan that can be successful even if returns are way below average.
- Consider building some inflation protection into your portfolio.
- Cover essential expenses in retirement with guaranteed income from Social Security, pensions, and annuities.
See Fidelity Viewpoints Team, 9 Rules of the Road to Retirement, Forbes, Apr. 15, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.