馃攳
How Much Money You Should Have Saved At Every Age | Retirement Savings By Age - YouTube
Channel: unknown
[0]
hey everyone this is lauren mack with
[2]
hack in the rat race when it comes to
[4]
retirement and strategies for saving for
[7]
retirement people often ask
[9]
how much money should i have saved at
[11]
every age in order to reach my
[13]
retirement goals
[15]
this can be a very difficult question to
[17]
answer because so much depends on one's
[20]
lifestyle age in which they want to
[22]
retire
[23]
goals during retirement and so on
[25]
in this video i'm going to talk about
[27]
how much money you should have saved at
[29]
every age for a typical american
[32]
planning for retirement if you stay
[34]
until the end of this video i am going
[36]
to share with you a tip that you might
[38]
be able to use in order to dramatically
[40]
reduce the amount of savings you will
[42]
need in retirement and possibly reduce
[46]
the amount of time you'll have to work
[48]
in order to get there additionally if
[50]
you watch this video and think you're
[52]
behind or maybe you haven't even started
[55]
saving
[56]
then i have created a workbook called
[58]
from xero to retirement which walks you
[61]
step by step
[63]
through getting your finances in order
[64]
and saving for retirement i'll put a
[66]
link to it in the show notes below so
[68]
let's jump right in the key to having
[70]
enough money to live comfortably in
[72]
retirement is to start saving as early
[74]
as possible this means starting in your
[77]
20s
[78]
most people in their 20s are just
[80]
embarking on their careers whether
[82]
that's freelancing in the digital
[83]
economy
[84]
starting a business entering a trade or
[87]
finishing up college and starting a
[89]
career either way people in their 20s
[92]
usually have very little save for
[94]
retirement and more often not can find
[97]
themselves in debt due to school loans
[100]
training startup costs or even entering
[102]
the workforce and that is okay
[105]
if you happen to be someone in your
[107]
twenties who has managed to avoid debt
[109]
and have money saved then
[111]
congratulations
[113]
you are ahead of the curve the best
[115]
piece of financial advice i could give
[117]
someone in their 20s
[119]
is to start creating good financial
[121]
habits while in your 20s because it will
[123]
be a tremendous benefit throughout your
[126]
life at this age there really is no
[129]
specific amount that you should have
[130]
saved although the more the better i
[132]
usually recommend that if you're in your
[134]
20s you should at least have an
[136]
emergency fund of one to two months
[138]
worth of expenses saved up
[140]
the reason having an emergency fund is
[143]
that it can help you avoid falling into
[145]
the debt trap i actually recommend that
[147]
people of all ages have an emergency
[149]
fund set aside that is easily accessible
[152]
in cash
[153]
so this is a good habit to begin early
[156]
speaking of debt many people in their
[158]
20s are fresh out of school
[160]
finally making some good money and it
[162]
can be very tempting to rush out and
[165]
finance and purchase a fancy car maybe
[168]
some designer clothes or even a sweet
[171]
bachelor pad but avoid the temptation to
[174]
do that
[175]
of course when you're just starting out
[176]
there are necessities such as getting a
[179]
car to get you to work or maybe suitable
[181]
clothing for work however it's important
[184]
to try not to live beyond your means or
[187]
max out your credit cards many times
[189]
when you do get your first job one of
[191]
the benefits offered to employees is a
[193]
company sponsored retirement account
[195]
like a 401k oftentimes the company match
[199]
meaning to a certain percentage the
[200]
company will match the amount you put in
[203]
so
[203]
if the company match is 5
[206]
then if you put in 5
[208]
they will match your 5
[210]
i always recommend signing up for a
[212]
corporate sponsor retirement account in
[214]
my videos and i always suggest
[216]
contributing at least up to what the
[218]
company will match because this is like
[220]
getting free money and it's considered
[223]
part of your compensation package what
[225]
if you work for yourself as a freelancer
[227]
entrepreneur or work for a company that
[230]
simply doesn't offer a retirement
[231]
account then i recommend opening an ira
[234]
or roth ira and contributing to the
[237]
annual maximum limit
[239]
ira stands for individual retirement
[241]
account if you want to learn more about
[243]
the difference between 401ks iras and
[246]
raw diaries i created a video called
[249]
roth ira versus traditional ira versus
[251]
401k i'll link to it above and in the
[254]
show notes below
[255]
to sum it up
[257]
life in your 20s should be all about
[259]
establishing good money habits
[261]
make sure you have an emergency fund of
[263]
at least one to two months of expenses
[266]
three to six months would be ideal
[268]
set up a retirement account either
[270]
through an employer-sponsored 401k or
[273]
your own ira or roth ira and lastly
[276]
make sure to avoid the debt trap
[279]
live within your means the more you can
[281]
start investing
[283]
early on as possible the sooner you'll
[285]
be able to retire so now let's talk
[287]
about your 30s by now you've most likely
[289]
been in the workforce for a while and
[292]
hopefully things are progressing well
[293]
with your chosen occupation
[295]
many experts recommend by the time you
[298]
reach 30 years old you should have one
[300]
year of salary saved up so for example
[304]
if your annual salary is fifty thousand
[306]
dollars a year then you should have
[308]
fifty 000 saved up and invested
[311]
this amount of savings should be in
[313]
addition to the three to six months of
[316]
savings that should be tucked away in
[318]
your emergency fund in order to protect
[320]
you from falling into the debt trap
[323]
because of job loss medical bills car
[326]
repair
[327]
speaking of debt by the time you reach
[329]
30 you really should try to eliminate
[331]
what i consider bad debt some examples
[334]
of these are credit card debt car loans
[337]
student loans etc paying on these types
[339]
of debt each and every month prevents
[342]
you from investing the difference and
[344]
limits your ability to further invest
[346]
and contribute to grow your nest egg as
[349]
you saw in the earlier example in your
[352]
30s it can be tempting to keep up with
[355]
joneses and live beyond your means many
[358]
of your friends and acquaintances will
[360]
take out large loans to buy an expensive
[363]
home they'll borrow large sums of money
[365]
in order to buy a luxury automobile in
[368]
order to give the illusion of wealth
[371]
avoid falling into this trap and feel
[373]
tempted to compete with these people by
[376]
making the same mistakes
[378]
98
[379]
of the time these wealthy people are
[382]
actually highly leveraged and truly
[384]
broke
[385]
the best way to get out of the rat race
[387]
meet your retirement goals and even
[390]
retire early and wealthy is to live
[393]
frugally and within your means okay so
[396]
now you've reached 40 and you've managed
[398]
to not succumb to the debt trap that so
[401]
many people fall into in their 30s you
[403]
should be more financially stable than
[405]
you were in your 30s so how much should
[407]
you have saved for retirement by now
[409]
well most experts recommend that you
[411]
have three times your annual salary
[413]
saved up so for example if you make
[416]
sixty thousand dollars a year you should
[418]
have a hundred and eighty thousand
[419]
dollars saved up and invested in
[421]
addition to this should be maxing out
[423]
your contributions to your retirement
[425]
account that we've been talking about
[427]
that is really important not only to
[428]
help grow your investment but
[431]
contributions to your retirement account
[433]
can decrease your overall tax liability
[436]
it is also a good idea at 40 to buy a
[438]
house
[439]
home ownership is really important
[441]
because home values tend to rise over
[444]
time if you buy a home at age 40
[447]
with a 30-year mortgage and make all
[449]
your payments your home will be paid off
[451]
by the time you're 70 and you've reached
[454]
retirement therefore reducing housing
[457]
expenses in retirement
[459]
once your home is paid off then it
[461]
becomes an asset this also gives you the
[463]
option of selling it once you reach
[465]
retirement
[466]
downsizing paying cash for a new
[468]
property that's worth less than the
[469]
value of your home
[471]
therefore
[472]
giving you the extra cash to help you
[474]
pay for your retirement
[476]
another benefit of owning a home or
[478]
rental properties is
[480]
leverage which is the mortgage if you
[483]
put twenty thousand dollars down on two
[485]
hundred fifty thousand dollar house and
[487]
the value rises ten percent then your
[490]
returns twenty 25 000
[492]
instead a 10 return on 20 000 is 2 000
[497]
as you reach 50 years old many people
[500]
are well established in their career and
[502]
hopefully have managed to get a few
[504]
raises over the years and are now making
[506]
even more money at this point you should
[509]
save around five times your annual
[511]
salary so
[513]
if you make sixty thousand dollars a
[515]
year then you should have three hundred
[517]
thousand dollars saved for retirement
[519]
you should really be noticing the
[520]
compound interest effects now due to all
[523]
that diligent savings over the years
[526]
once you turn 50 years old the irs
[528]
allows you to start making catch-up
[531]
contributions to your retirement
[532]
accounts which means you're allowed to
[534]
contribute higher limits to the annual
[536]
contributions so you should be taking
[539]
advantage of this in order to grow your
[540]
retirement account quicker and also
[543]
reduce your overall tax liability
[545]
another recommendation at this age is to
[548]
continue to remain debt free
[550]
live frugally and continue to pay down
[552]
your mortgage by age 60 now you're
[555]
getting close to retirement by this age
[557]
it is recommended to have seven to eight
[560]
times your annual salary saved up so if
[563]
you make sixty thousand dollars a year
[566]
then you should have four hundred and
[567]
eighty thousand dollars saved for
[569]
retirement you're probably debt free now
[572]
and really enjoying watching your
[573]
savings and investments grow at this
[576]
point it might be tempting to start
[578]
dipping into your retirement savings
[580]
however avoid doing this
[582]
keep up the study savings pace many
[585]
people are still working and earning
[587]
great incomes in their 60s and can
[589]
really boost their retirement accounts
[591]
if they have fallen behind in the early
[594]
years hopefully by now your home is
[596]
either paid off or close to being paid
[598]
off which should give you peace of mind
[600]
as of now you should be eligible for
[602]
social security benefits but you might
[604]
want to put that off as long as possible
[607]
to be able to receive the maximum amount
[609]
of money you can go to the social
[610]
security website they have a form where
[612]
you can enter your information and it
[614]
will give you estimates of what to
[616]
expect at different ages i'll put a link
[618]
to it in the show notes below you'll be
[620]
able to determine at what point it makes
[621]
sense to take it out and how much will
[623]
be added for waiting and if you're just
[626]
starting out saving for retirement and
[628]
you're still relatively young
[630]
don't assume you will have social
[632]
security benefits when you reach your
[634]
60s or 70s many experts debate whether
[637]
they'll actually be enough money to pay
[639]
out those benefits in the future now for
[641]
the bonus tip
[642]
like i said at the beginning of this
[644]
video having enough money for retirement
[646]
depends mostly on your lifestyle cost of
[649]
living and retirement in america however
[652]
these days more and more people are
[654]
choosing to retire outside the united
[657]
states where the cost of living is
[658]
dramatically less and they can have a
[661]
much better standard of living for
[663]
substantially cheaper than the us the
[665]
thought of retiring abroad might sound
[667]
frightening to some people and i get it
[670]
but i have traveled to over 58 countries
[673]
and lived all over the world and i can
[675]
tell you that you might be quite
[678]
surprised retiring abroad is not unusual
[681]
in fact many americans choose to either
[683]
retire early to stretch their retirement
[686]
savings even further by joining the ever
[688]
growing list of american expats who are
[691]
deciding to retire abroad many countries
[693]
around the world entice retirees by
[696]
offering retirement visas to come spend
[698]
their golden years enjoying the beaches
[701]
golf courses and laid-back lifestyle in
[704]
their country
[705]
i personally know so many people who
[707]
have chosen this option and none of them
[710]
have regretted it you're probably
[711]
thinking
[712]
oh lauren
[714]
what about the health care overseas it
[716]
cannot be as good as the u.s
[718]
well my husband and i have received
[720]
medical care in numerous countries all
[723]
over the world including emergency
[725]
surgeries from countries in southeast
[728]
asia south america mexico
[731]
europe and i can tell you that every
[734]
time we receive medical care it has been
[736]
as good or better than the care we
[739]
received in america and the bill was
[742]
certainly much
[744]
less expensive if this sounds appealing
[746]
to you
[747]
then take a few scouting trips to some
[749]
countries where you think you may want
[751]
to live and spend some time checking it
[753]
out and meeting up with some expats that
[755]
live there to get their impression of
[757]
what it's like to retire abroad in the
[760]
country that you're considering now i
[761]
want to hear from you in the comments
[762]
section would you like me to do a video
[765]
on retiring abroad have you been
[767]
considering moving abroad to retire if
[769]
so where let me know in the comments
[771]
below if you're watching this video and
[773]
you're thinking lauren i am so far
[776]
behind or i haven't even started is it
[779]
too late
[781]
then watch this video right here
Most Recent Videos:
You can go back to the homepage right here: Homepage