Retirement planning sounds like a daunting and confusing task. But there’s one practical and surprisingly simple step you can take today to greatly improve your retirement preparedness — run some numbers to estimate how much money you’ll probably need. You’ll be happy to see how quickly you can do this, and how beneficial it will be.
A Quick Calculation
It’s never been easier to estimate your retirement needs, with numerous free online calculators readily available. One of the simplest is Fidelity’s myPlan Snapshot. You just need to enter five bits of information (your age, income, how much you have saved so far, the monthly amount you’re now contributing to a retirement plan, and your investment style). Then it will give you a quick read on how much you may need to have in your nest egg by the time you retire, and how much you should be setting aside each month right now in a 401K plan or IRA. Read More