SPRINGFIELD — Many people are already filing, and getting back their refunds, but have you thought about saving that money for retirement?
247wallst.com has a state-by-state report that measures the income a family needs in order to attain a modest yet adequate standard of living in a metro area, while saving to retire on time.
That comes to about $40,000 a year in Missouri.
It can vary depending on your lifestyle — but start saving early, because time is a valuable thing.
Saving now will pay off big later, and Stephen Evans — Owner of Evans Wealth Planning — says getting started earlier in is the right choice.
“You still have to live life now, but you have to manage your money so you can live in the future because we’re all going to get old, and getting old can suck,” Evans says. “To reach your goals there is a rule of thumb, so you need to be saving about 10% of your income. If you’re over 45 or around 50, and you really haven’t started saving, 20% is a good number.”
If you have gotten a late start on things, your path to retirement could look a little different, but it’s certainly not impossible to get there.
“For a lot of those people the game plan is either you work longer, so you might have to work to 70,72,73. You save more money, or you have lower expenses in retirement,” says Evans.
Decision making is huge, and Evans says the pitfalls people have look a lot different than they used to — especially for the younger generation.
“It used to be keeping up with the Jones’. So you’d look at your neighbor, he’d get a new car, so you’d get a new car. In the age of social media, it’s like keeping up with the Kardashians. These people are trying to live these lifestyles that are so above their means, that it’s bankrupting them.”
There is one big thing people often overlook when it comes to the importance of saving money: inflation.
In our country if you put $100 down, in 10 years it’s lost 25% of it’s purchasing power. In 20 years, its lost half of its purchasing power. It’s still $100, but it will take $200 to buy the same amount of goods and service,” says Evans.
No matter your age, you can still plan for your future.
Evans says it’s wise to start mapping out your expenses early. Financial planners or online calculators can help. That way you can get an idea of what you’ll need to save, and when you can retire.