I love a good retirement calculation, but the latest bit from Matt Kranz at US Today that says you need to save more than $82 a day to have a good retirement is not it. Could you come up with a more daunting daily amount if you tried? A little math and it's easy to discover that adds up to more than $2,500 a month. That's even more than the $17,500 you can contribute to a 401(k) in 2014. You could put in as much as $23,000 in 2014 if you are older than age 50, but that would still less than the $82.28 average this advocates.
Sure, saving that much would be great. But if it's impossible (and for most of us, let's face it...), it may keep some individuals from saving anything at all. Do me a favor and forget this number. Instead, aim to contribute 6% of pre-tax income to your 401(k), and eventually increase that to 10%. You'll be on your way for much less per day.
If you have a 401(k) plan or are thinking of getting one, you need to understand what you are paying for it. Start with these 10 questions, which can help you make sense of plan fees. and make the most of your earnings.
10 Questions to Ask About 401(k) Fees
The Wall St. Journal ran an interesting piece this week about what to look for in a retirement home. The home-buying checklist includes practical things like transportation, space, bathrooms and zoning.
For some retirees, there are bigger-picture considerations, such as whether you want relocate to another part of the country in retirement, or even another part of the world. Whatever your retirement dream, it helps to have your own personal checklist to help you find your perfect spot.
Best Places to Retire Abroad
10 Tips for Happy Retirement Living
Quick! Fund an IRA for 2013. That's right, if you have not yet filed your 2013 income taxes, there is still time to open and fund a tax-deductible individual retirement account or IRA for 2013. You may qualify for a deduction that decreases your overall tax bill. Find out more about IRA contribution limits for 2013 and self-employment IRA contribution limits for 2013.