By starting early with saving and investing in a retirement account, you’ll likely become self-sufficient and have more control over your life. You don’t want to depend on Social Security, Medicare, Medicaid, or even relatives to take care of you in retirement. They’re all unreliable sources that you can’t control.
Similarly one may ask, what are several reasons that early retirement planning is important?
Here are 6 reasons why you should start retirement planning as early as possible.
- Make Money on Your Money. …
- Take Advantage of Employer Contributions. …
- Start When You Have Fewer Responsibilities. …
- More Investment Options and Risk Tolerance. …
- Retire Earlier. …
- Share the Wealth.
Keeping this in consideration, where is the safest place to put your retirement money? No investment is entirely safe, but there are five (bank savings accounts, CDs, Treasury securities, money market accounts, and fixed annuities) which are considered the safest investments you can own. Bank savings accounts and CDs are typically FDIC-insured. Treasury securities are government-backed notes.
Consequently, how much money do you really need to retire?
So how much income do you need? With that in mind, you should expect to need about 80% of your pre-retirement income to cover your cost of living in retirement. In other words, if you make $100,000 now, you‘ll need about $80,000 per year (in today’s dollars) after you retire, according to this principle.