What is the most important aspect of personal finance for people in their 40s to 50s?
Posted by admin | Posted in Finance | Posted on 29-03-2009
Tags: 40s, Nest Egg, Personal Finance
2
Too Curious asked:
How much of a nest egg do we need to build? We have our home, and retirement funds but how much is enough?
Content by Fun Joomla
How much of a nest egg do we need to build? We have our home, and retirement funds but how much is enough?
Content by Fun Joomla
Content by Home Decor Zine
In general?
Debt reduction and risk management.
If you own your house outright that is a great start.
How much is enough is very hard to predict given the current state of inflation tax.
Content by Angel Ponsel
Reduce debt and build up the amount of financial assets you hold. The amount you should save depends on the lifestyle you want to have in retirement. Obviously, the better the desired lifestyle, the more you have to save. Figure out how much money you want to have each year in retirement, subtract the amount of your anticipated Social Security payments (plus any pension you expect), and you’ll end up with the amount of income you need to finance from savings. Assuming you’ll retire around age 65, multiply that amount by 25 and you’ll have an approximate target for your nest egg.
See the webpages below for more details.