Here's How Much Money To Retire Comfortably
One thing that we all come to consider at some point in life is how much money to retire comfortably you need to save.
It is almost never too late to start thinking about the cash that you have set aside for retirement. Of course, a part of why knowing how much money to retire comfortably you need is tricky is due to the fact that there is no real set amount of cash.
Everybody's personal situation is different. So, while we will be able to give you a few pointers in this article, do bear in mind that this is a rough guide. You will need to do your own calculations to work out how much cash is right for you.
Let’s dive right into the subject and show you how to maintain your retirement fund untouched even if you get into an emergency by making use of an online title loan.
Figuring Out How Much Money To Retire
1. Everybody's Personal Situation Is Different
The reason why it is so hard to give a definitive figure for how much money to retire is that the right amount to save can be different as everybody's situation is different.
Our home expenses differ. We consume different foods. We live in areas with different prices. Some of us may have expensive plans for retirement, while others are perfectly content to just sit around their home and do a spot of gardening.
So, when you are thinking about the correct answer for how much money to retire, think about what you want from your retirement. Do you want to continue to live the life that you live now? Are you happy to downsize? We suggest a good baseline to consider the amount of cash you spend now. This leads us quite neatly onto the next section.
2. How Much Cash You Can Expect To Spend
There is no hard and fast figure here. When most experts give an answer to how much money to retire, they estimate that we would be spending about 80% of the cash that we spend now. So, if you spent $2,000 a month, you would need about $1,600 a month for retirement, or $19,200 a year.
Most experts also recommend that you have enough income to last you at least 25 years. So, in this case, $480,000 would be ideal.
Obviously, if you plan on traveling or upping your expenses over the course of retirement, then this figure will change, as it will if you opt to downsize your home or lifestyle. However, for now, consider 80% of your monthly income, and plan for 25 years of retirement.
3. Not Everything Needs To Be In Savings
Luckily, you probably aren't going to need to have all of that cash sitting in the bank. Barely anybody will ever retire on funds that they purely have sitting in the bank.
Over the course of your working life, you will have paid into your social security, work pensions, etc. Unless you have drawn on some of these income sources in the past, all that cash should be ready and waiting for you once you hit retirement age.
All of this will factor into how much cash you need to save. Again, this can vary between people. However, you will often find that these income sources will drastically reduce the amount that you need to save. For example, social security can account for as much as 40% of your income!
You should try to have around 60% of your retirement savings in cash. Everything else should be covered by your other income sources, although you may need to occasionally check the numbers.
Do bear in mind that with some income sources, you will need to pay tax on whatever you withdraw from them. This is something that you will need to consider when budgeting yourself for retirement.
Needing Cash? Avoid Dipping Into Your Retirement Fund
When people look for answers for how much money to retire they need to save, that’s usually because they are trying to make sure their fund is big enough.
In some cases, they may be planning on dipping into their retirement funds to cover emergency expenses. Most retirement funds actually allow you to take cash from them early. However, you have to remember that taking cash from your retirement fund is taking cash from the future you. Any money you withdraw now won't be available later on.
This is why you may want to consider alternative options if you need access to cash. A Delaware title loan from Delaware Title Loans, Inc. could be an option.
What Are The Benefits Of Title Loans?
Delaware Title Loans, Inc. offers title loans that allow you to borrow cash against the title of your vehicle. As long as you hold a lien-free title to your vehicle, then there is a chance that you may be able to qualify for a title loan since we have no employment requirements, and we welcome all types of credit.
Borrowing cash using a title loan can often be a simple process since a title loan takes less than a day to qualify for, and you can receive the cash as soon as the same day or the following business day.
How Can I Get A Title Loan?
The process we follow here at Delaware Title Loans, Inc. is straightforward. You can get started by filling out and submitting the quick title loan inquiry form on our website. In next-to-no time, one of our team members will give you a call to provide further details and instructions.
After that phone call, you can meet our loan representative for a vehicle inspection at a location of your choice. They will also review your lien-free title and government-issued photo ID.
If you are approved and after signing a few forms, you will receive the money on the same day or the following business day.
Plan For Your Retirement
It is important that you plan for your retirement as early as you can. Ask any expert how much money to retire comfortably and they will tell you about 80% of what you are making now is a good starting point.
Making sure to maintain these savings and not dipping into your retirement savings is important as well. If you have emergency expenses that need to be covered urgently, then a title loan could be an option. Inquire about a title loan from Delaware Title Loans, Inc. today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.