Monthly Retirement Report
I want to start documenting my monthly retirement savings amounts and to see my progress each month.
I am currently in my early forties but started saving for retirement with my first part time job’s 401K plan.
Here is some background of my journey. I remember asking my dad what is a 401k! SO I enrolled with a 1% deduction each paycheck at the age of 21.
Now it was not alot of money maybe $10 a paycheck but I got started!
When I got my first full time job I enrolled at 5% deduction. It was hard at first but as time went on, I got used to it and saw my retirement balance grow. Now here I am almost 20 years later and have increased my contribution to 10% per check.
Breakdown of my Retirement Accounts Contribution for January:
- Thrift Savings Plan (TSP): $844
- Roth IRA: $110
Total: $950
How much money do you need to retire?
A common guideline is that you should aim to replace 70% of your annual pre-retirement income. This is what the calculator uses as a default. You can replace your pre-retirement income using a combination of savings, investments, Social Security and any other income sources (part-time work, a pension, rental income, etc.). The Social Security Administration website has a number of calculators to help you estimate your benefits.
Of course, retirement planning is a very personal journey. The amount you need to save depends on your age, income, desired retirement income, inflation, and more.
Average retirement savings of American households in 2022: $65,000
How Much Should You Save for Retirement?
Here’s the reality: If you’re out of debt and you’ve saved up three to six months of emergency expenses, you should be investing 15% of your income in growth stock mutual funds for retirement. If you’re getting started later in life, you might need to play catch-up and contribute more than 15%.
Great Blog Post: https://www.newretirement.com/retirement/
Savings Calculator: https://www.nerdwallet.com/investing/retirement-calculator
Make a retirement plan and stay the course
Attaining a comfortable retirement is generally a matter of planning ahead — deciding how much to save and invest in a retirement fund each month — and then sticking to that plan. Having money and financial freedom isn’t about buying more stuff. It’s about living the life you want, spending time with the people you love, and in the process, getting to know yourself better.
Could you add a side hustle to start your retirement savings? Check out my post: HOW to make $100 per month in side hustle income – The Frugal Father
Have you started saving and documenting your retirement?
