How much money should I have saved for retirement by 35?

Question

By age 35 how much money should I have in my retirement account?

Answer 1

Your goal should be how much you have at retirement, not at different periods along the way. I suggest 10 times your annual income by retirement. If you think you'll be making 100K a year by the time you retire, you should have a million dollars at that time. Obviously, time needs to be on your side for compounding interest to grow your money--if you invested just 10K at age 20 you wouldn't need to contribute another dime and you would have a million by age 65. At 35 you need 10 times as much for the same effect. Don't put it off any longer--start investing now. The more you invest and the earlier you do so, it will pay off in spades.

Answer 2

Well the simple answer is as much as possible. But, it's great that you are thinking about your retirement at age 35. That was about when I started saving for retirement and I really wish I'd started sooner. If you have access to a 401K, you should be contributing as much as you can to it, and at least as much as will be matched by your employer. You should also consider an IRA. Just keep putting that money away and don't touch it and you'll be pleasantly surprised when you are ready to retire. I started when I was about 35 and I have about $125K in my account at age 49. If you have that much already you are doing great.

Answer 3

Try www.choosetosave.org to see how you're doing.

Basically, you want your savings at age 65 (or when you want to retire) to equal about 25x your income at 65. If you make 8% on your money (which is reasonable), you can double your money in 9 years (The Rule of 72 -- look it up). So, if you are 35, you have about three doublings between now and age 62. Every dollar you have now = 8 dollars then. So, if you have 12% of the money you think you'll need, you're doing okay. Otherwise, you have to keep putting money away, which I would do anyway. I think that saving 10-15% of your money is reasonable, but that's up to you to decide.

Answer 4

If doesn't matter what you have currently as long as you have a plan that starting now, you will contibute either to a 401K plan if your employer matches any amount or your own Roth IRA using after tax money. Try to plan for at least 10% off the top but more if you can swing it. You're not going to miss $25-50 a week of tax free contributions and cannot spend it if you don't see it; however, over the next 30 years that will bring you a nice accumulation of interest. Go for growth at your age but watch the market. Diversify to different types of stocks, funds, and indexes.

Answer 5

Depends upon how much you need at retirement age to live the way you want to live.

Here's a simple formula : Take any amount, divide it by 2 and then drop a zero.

We will do ONE MILLION for the example :
$1,000,000.oo divided by 2 = $500,000.oo DROP a zero = $50,000.oo.

Can you life off $50,000.oo a year?? If so then you will need to have one million dollars in an investment account and NOT a bank savings account by the time your retire. Don't forget that inflation will effect that million as well.

Simple simple!

Answer 6

401k isn't an selection on account that it truly is available by technique of employers in effortless words. Roth is high-quality because you'll by no skill have an annual income over the reduce. Open one and make investments in stocks. you've precisely 35 yrs to amass 3 million necessary for retirement

Answer 7

You should have at least 50k by age 35. If you keep pace with your age until 30, you are doing ok.

All depends on where you live and how much you want at retirement.

Answer 8

It's not that easy. There is no one standard answer. What kind of needs do you anticipate having when you retire. How old will you be when you retire. What kind of lifestyle are you shooting for?

I'd go to Fidelity.com and use their retirement planning tool to help you determine the answer to these questions and dozens more I'm not even mentioning. It'll tell you where you stand and what you need to do to meet your goals.

Answer 9

it depends on when you want to retire and how much income you need per year in retirement. any of the major financial services companies i.e. vanguard, fidelity, t. rowe price have retirement calculators on their site. these calculators can help you figure out how much you need by when.

btw, if you are maxing out your 401(k) or 403(b), etc. in 2007 ($15,500) that would be a great start toward retirement savings

Answer 10

absolutely as much as possible!! i am 37 and have nothing saved- its all been eaten up by the costs of buying a home and the repairs to it (i have someone on my roof RIGHT NOW working on an ice leak)

save save save as much as you can- always! cuz u never know when your roof will cave in on you

Susan