How to Plan for Retirement

How to plan for your Retirement Pay off your debts and avoid acquiring more Start saving now to build up your retirement funds to fully enjoy your golden years. 28.6% Bankruptcy filers of people aged 55 and older in 2011 The bigger the interest rate is, the more you should pay your debt first. 6 months worth of income emergency fund for retirement to anticipate possible expenses 28/36 28% of pre-tax household income should go to servicing home debt; Save up for years so you can make 70-90% of your old salary annually RULE • 36% should go to all your debt. Spend less than what you earn, Start managing your assets, nest egg, and investments Plan to save around 8x of your final income by retirement retirement savings plan sponsored by an employer in 401(k) which you can save and invest from your paycheck before taxes are taken out Starting in your 20's, try to set aside 10-15% of your income for retirement savings Individual Retirement Account (IRA) an investment used to earn funds for retirement savings up to a maximum amount that could be tax deductible depending on your income percentage of your income you 10% should save every year for your 401(k) or IRA account Sta planning for long term care Median Annual Rates as of 2013: 7 in 10 Americans will need Long term care once they reach 65 years old and above. It's important to have a plan for the costs of your future needs. Homemaker services: Assisted Living Facility $41,756 $41,400 Home Health Aide: Semi-Private Nursing Home: $44,479 $75,405 Adult Day Health Care: Private Nursing Home: $16,900 $83,950 SOURCES: Berger, Roger. 7 Rulesof Thumb for retirement Planning. August 2013 Charles Schwab. Should You Get Out of Debt Before Retiring?. August 2012. Clark Josh, How Stuff Works?. 10 Tips for Retirement Savings. 2013. CNN Money. Ultimate guide to retirement. 2013. Fidelity.com. Starting Out: Balance Spending, Savings, and Debt. 2013. Investopedia. Individual Retirement Account - IRA. 2013. Kiplinger.com. Downsize Your Debt Before You Retire. February 2013. Kossman, Sienna. How to Pay Down Debt While Saving for Retirement. June 2013. Wall Street Journal. What Is a 401 (k)? "2013. LTCoptions. Retirement Checklist: Preparing for your Senior Years. 2013.