4 signs you won't be ready

for retirement that are

obvious by age 40
Джессур Эмиль
Introduction
For anyone who has had a few years to save for retirement but is still
decades from leaving work, you're probably starting to ask yourself
some questions about how you're saving and if you're doing it right.
Saving for retirement is essential — after all, you'll depend on that money to live on
someday. But, retirement planning is also a long-term process that unfolds over a
number of years.
In a way, that's a good thing: The sooner you catch any potential problems, the sooner
you can fix them. And luckily, the signs that something is off with your retirement
planning will be pretty apparent when you check in on your savings.
Here are four very apparent signs you'll notice if you're not on track for retirement, even
in your younger years.
1. You don't have at least three times your
income saved by age 40
"The general rule of thumb is that you want
to have an amount equal to your annual
income saved for retirement by the time
you're 30. You want to have two times [your
income] by the time you're 35, and at age
40, you should have three times your
annual salary saved," says Tara Fung, chief
revenue officer at investing platform AltoIRA
In many cases, the math here is simple. "If
you're making $100,000 a year, you should
have $300,000 saved for retirement by the
time you're 40," she says. If you're not quite
there yet, it might be a sign that you're not
on track. But, saving more to catch up in the
coming years is a smart move. And the
sooner you start, the easier saving will be.
2. You've taken "In a lot of countries, they actually don't allow you to
borrow money from your retirement account — the US is
money from your one of the few that does," says Fung. Besides the fact
retirement accounts that your retirement funds are meant to be the cash
and not replaced it you'll live on for decades, even simply borrowing money
from your retirement accounts can impede the growth
and compound interest that retirement accounts rely on.
"If you're borrowing against retirement accounts now,
you're really putting yourself at a disadvantage to be able
to be ready," Fung says.
If you have taken money from a retirement account, have
a plan to replace it if you haven't already.
3. You're still not saving at least
15% of your income for retirement
"You should be saving around 15% of your income
to go towards retirement your entire working life,"
Fung says. She also suggests taking this amount
directly out of your paycheck so you never miss it.
Your office's 401(k) plan is the first place to start.
"Set it up so that your money is going directly from
your paycheck to your retirement account if you're
lucky to have a retirement account accessible from
your employer," she says.
If you never see the 15%, it's far easier to save it. In
a 401(k), not only will you be more inclined to save
through the automatic savings, but you'll also have
access to a match to double your savings up to a
certain percentage of your contributions, if offered,
and some tax benefits, too.
4. You haven't
considered how
your portfolio is
invested

In retirement savings, having your portfolio invested appropriately is as

important as saving itself.
Former financial advisor and founder of Building Bread Kevin Matthews
explains that having money saved for retirement and having that money
invested properly are two different things. Not investing your retirement
savings "is almost like putting food into the microwave, or putting food into
the oven, and not actually turning it on," he previously told Business Insider.
References
• https://
www.msn.com/en-us/money/retirement/4-signs-you-won-t-be-r
eady-for-retirement-that-are-obvious-by-age-40/ar-BB1b8Uoq?fb
clid=IwAR2s2sxX4NXCX9c1-wtBajew75X5cl_4stykMRQLY_EaNtny
mMzuJiZ3ot8
(Дата обращения 19.11.2020)