If you’re like most people, you’re probably not saving enough for retirement. In fact, according to a recent study by the Economic Policy Institute, the average American has less than $5,000 saved for retirement.
But what if William Schantz told you there was a way to 10x your retirement savings while barely lifting a finger? It’s called the Retirement Savings Accelerator, and it’s a simple 3-step process that anyone can follow to maximize their savings in retirement. Here’s how it works:
● Step 1: Figure out how much you need to save for retirement
The first step is to figure out how much you need to save for retirement. This will vary depending on factors like your age, lifestyle, and desired retirement income. A good rule of thumb is to aim for saving at least 10-15% of your income for retirement.
If you’re not sure where to start, there are a number of online calculators that can help you figure out how much you need to save.
● Step 2: Invest in a retirement account that offers tax-advantages
There are a number of retirement accounts that offer tax advantages, such as 401(k)s and IRAs. Contributing to one of these accounts can help you save money on taxes now, and it will also grow tax-deferred (or tax-free in the case of a Roth IRA). This means that you’ll be able to keep more of your money in retirement.
● Step 3: Automate your retirement savings
Once you’ve figured out how much you need to save and where you’re going to invest it, the next step is to automate your retirement savings. This can be done by setting up automatic transfers from your checking account to your retirement account.
The best way to do this is to have the money transferred on payday, so you never even see it and are less likely to spend it. By following these three simple steps, you can 10x your retirement savings while barely lifting a finger.
How Much Money Should Save for Retirement?
There’s no easy answer to how much money you should save for retirement. It depends on a number of factors, including your age, income, lifestyle, and retirement goals. However, there are some general guidelines that can help you figure out how much you’ll need to save.
A good rule of thumb is to save at least 10% of your income for retirement. If you start saving early, you may be able to save less than 10%. But if you start saving later in life, you’ll likely need to save more.
Another general guideline is to have enough saved to replace 70-80% of your pre-retirement income. So, if you’re earning $50,000 a year before retirement, you’ll need $35,000-$40,000 a year in retirement.
Of course, these are just general guidelines. The best way to figure out how much you need to save for retirement is to talk to a financial advisor. They can help you create a personalized savings plan based on your specific circumstances.
Everyone wants to save enough money for retirement to live a comfortable life, but how do you know how much money you need? Some people save their entire lives but barely manage to have enough money in their account to last their retirement. The steps shared by William Schantz are a good starting point as they can help you 10x your retirement savings while barely lifting a finger.