2018 Update: Check out our discussion on the FIRE movement (financial independence retire early) for beginners!
Ladies, how much are you saving for retirement? How large does retirement loom in your thoughts — and where does it fall in your priorities? Welcome to our next installment of our Money Milestone series, where we’ve discussed paying for grad school, wedding finances, home buying, financially planning for a baby, and financial strategies for divorce.
I haven’t retired yet, obviously, but it does loom fairly large in my thoughts and priorities just because getting enough saved by the time we want to retire — and hopefully meet a personal goal of paying for college for both boys — is not going to be a simple matter. Constant vigilance is the key, I think! Of course, you don’t want to save so much that you can’t enjoy your life right now — after all, not to get too dark on this sunny day, but not everyone will have to worry about retirement. We max out my husband’s 401K and my SEP-IRA every year, and we save what else we can in tax-savvy investments and with automatic investing. (I just started using a new app called Acorns, which is interesting: you can link it to bank and credit card accounts, and it will round up every transaction and invest the difference in Vanguard funds. Spent $8.95 at the drugstore? It’ll take that $.05 and put it in a queue to invest when you get to $5. It’s a bit wonky right now — it mysteriously hasn’t updated in 10 days — but I think it shows a lot of promise.)
Readers, are you throwing everything you can at retirement — or are you prioritizing other goals first (like keeping investments fairly liquid for a home purchase or other big expense like a wedding, or paying down debt)? (Incidentally, we did try to answer what retirement assets you can use for a first home purchase in a previous post.)
- Retirement Plans [Women’s Institute For A Secure Retirement]
- Smart Ways to Save for Retirement at Every Age [USA Today] (autoplay video)
- Retirement Mistakes People Make at Every Age [Washington Post]
- 10 Retirement Myths That Can Wreak Havoc on Your Nest Egg [LearnVest]
- Ask an Advisor: How Do I Create a Retirement Savings Plan? [DailyWorth]
- High Cost to Focusing on Student Loans Over Saving [New York Times]
- What Surprised Retirement Experts When They Retired [Forbes]
- The Shockingly Simple Math Behind Early Retirement [Mr. Money Mustache]
- book: (from AARP) The Single Woman’s Guide to Retirement
- book: Saving for Retirement (Without Living Like a Pauper or Winning the Lottery)
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