Company Retirement Plan
Retirement plan
retirement
10 commandments of retirement planning

IV. You shall have a financial plan
Next
5 of 12
Back
IV. You shall have a financial plan

Your financial plan will be the road map to retirement.

Don't get overwhelmed, though. "Once you get through some of the basic variables in the beginning, it's really not that hard," Reilly says.

Some of the basic variables include the amount you currently have saved and how much money you'll need to retire.

A rule of thumb is to assume you'll need 80 percent of your current annual income in retirement. Subtract any known retirement income such as a pension or Social Security, and you have the amount you'll need per year in retirement.

According to the Social Security Administration, the normal retirement age is about 66 years. Many financial planners recommend running your financial plan to age 100, which means workers need to plan on financing about 34 years on average.

Socking away money probably won't get you to retirement by itself. That's where wise investing comes in.

Use Bankrate's return on investment calculator to find the approximate rate of return your portfolio needs for you to reach your retirement goals.

The asset allocation of your portfolio will be based on rate of return as well as your time frame and risk tolerance.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed, 0 point 4.26%  0.22 4.48%
15 year fixed, 0 point 3.30%  0.01 3.31%
5/1 ARM 3.30%  0.05 3.35%
 
View Rates in your area Search
Product Rate Change Last week
30K FICO-based HELOC 4.75%  0.01 4.76%
50K FICO-based HELOC 4.51%  0.01 4.52%
100K FICO-based HELOC 4.24% --0.00 4.24%
 
View Rates in your area Search
Product Rate Change Last week
60 month used car loan 2.86%  0.23 3.09%
48 month used car loan 2.79%  0.42 3.21%
60 month new car loan 2.94%  0.04 2.98%
 
View Rates in your area Search
Product Rate Change Last week
1 Year CD 0.89%  0.01 0.88%
2 Year CD 1.01%  0.02 1.03%
5 Year CD 1.59%  0.07 1.66%
 
View Rates in your area Search
Product Rate Change Last week
Balance Transfer Cards 15.71%  0.01 15.70%
Cash Back Cards 16.36% --0.00 16.36%
Low Interest Cards 10.91% --0.00 10.91%
 
Search
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Hiring home caregivers directly

Fewer long-term care insurance policies allow insureds to pay for home care directly, but being able to do this can stretch long-term care dollars.  ... Read more

advertisement
Partner Center
advertisement

Connect with us