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This Habit Change Could Save You an Extra $500K for Retirement
What did you spend money on today? Did you grab a coffee on the way to work? Did you go out to lunch? Did you take a cab or use a ride-sharing service to get home from happy hour?
If any of these describe you, you might be able to save over $500,000 extra for retirement.
But there’s a catch.
The Trick That Could Save You Over $500K for Retirement
A recent GoBankingRates study surveyed over 1,000 adults and found that Americans spend an average $5,339 on frivolous purchases. Chief among them: Eating out/food delivery, coffee, alcohol, ride-sharing services and taxis, clothing and accessories and events like concerts and sports games.
The survey found that if Americans cut their spending in those categories by half and instead invested the $2,670 each year in an IRA earning a 7% return beginning at age 25, they could save over $600,000 for retirement before taxes.
Of course, the amount decreases for those over 25, but the numbers are still impressive. For example, even if you started at 55 with the same equation, you could save nearly $30,000, in addition to what you’ve already been saving.
The Best Way to Save Extra Money for Retirement
Regardless of age, the more you can save for retirement, the better, and it can be tough to take an objective look at your finances to find areas to cut spending. A financial advisor can assist you in creating a realistic budget so you can enjoy life now, as well as guide your investment choices in a way that will set you up for a relaxing retirement.
The value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, but research suggests average additional investment returns can range from 1.5% to 4% each year.
Voya Financial found that 79% of people who use an advisor said they “know how to pursue achieving their retirement goals.” The study also found that 59% of those who use an advisor have calculated how much they need to retire, while 52% established a formal retirement investment plan.
Chances are, there are several highly-qualified financial advisors in your town. However, it can seem daunting to choose one.
This new tool makes it easy to find the right financial advisor for you. Now you can get matched with up to three local fiduciary investment advisors that have passed a rigorous screening process.
Follow These Steps to Get Matched With the Right Advisor for You
1. Simply enter your ZIP code below.
2. After you enter your ZIP code and answer questions about your financial goals, you can compare up to three top advisors local to you and decide which to work with.
3. Enjoy a better financial future!
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SmartAsset - copyright 2018
SmartAsset - copyright 2018