How to Save for Retirement Without a 401(K)
Determine when you want to retire., Evaluate your current financial holdings., Evaluate your resources.
Step-by-Step Guide
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Step 1: Determine when you want to retire.
How much money you will need to save depends on when you want to retire.
Before you begin exploring retirement options, you need to understand how long you intend to be retired.
For example, if you retire at the age of 65, you may need enough money saved to take care of you for another twenty years.
Knowing when you want to retire will help you get a better idea of how much you will need to save.
You will need enough money to support yourself and meet any health needs that may arise as you get older.
In the United States, the typical 65-year-old male today will, on average, live to the age of about
84.
The average 65-year-old woman will live to almost
87. -
Step 2: Evaluate your current financial holdings.
Your current income and financial assets will be good indicators of how and where you should save your money.
If you already have significant investments in real estate or financial assets like stocks and bonds, the need to save for retirement is less pressing.
However, if you do not have these resources, you should begin investigating your options as soon as possible.
Saving as little as $50 to $100 a month can make a dramatically affect how much you save for retirement.
If you own real estate, determine which properties you would be willing to part with in order to pay for your retirement.
For example, if you are a farmer, figure out which pieces of land you will want to continue using and which you are willing to sell. , The first step in saving for your retirement is to create a budget and determine how much you will be able to save.
This will help determine what kind of retirement savings plan to choose.
You can use a budgeting application or calculate your finances yourself.Using your monthly income, calculate how much money you can save each month and still meet your living expenses.
Online tools like Mint are a great way to track your finances and create a budget. -
Step 3: Evaluate your resources.
Detailed Guide
How much money you will need to save depends on when you want to retire.
Before you begin exploring retirement options, you need to understand how long you intend to be retired.
For example, if you retire at the age of 65, you may need enough money saved to take care of you for another twenty years.
Knowing when you want to retire will help you get a better idea of how much you will need to save.
You will need enough money to support yourself and meet any health needs that may arise as you get older.
In the United States, the typical 65-year-old male today will, on average, live to the age of about
84.
The average 65-year-old woman will live to almost
87.
Your current income and financial assets will be good indicators of how and where you should save your money.
If you already have significant investments in real estate or financial assets like stocks and bonds, the need to save for retirement is less pressing.
However, if you do not have these resources, you should begin investigating your options as soon as possible.
Saving as little as $50 to $100 a month can make a dramatically affect how much you save for retirement.
If you own real estate, determine which properties you would be willing to part with in order to pay for your retirement.
For example, if you are a farmer, figure out which pieces of land you will want to continue using and which you are willing to sell. , The first step in saving for your retirement is to create a budget and determine how much you will be able to save.
This will help determine what kind of retirement savings plan to choose.
You can use a budgeting application or calculate your finances yourself.Using your monthly income, calculate how much money you can save each month and still meet your living expenses.
Online tools like Mint are a great way to track your finances and create a budget.
About the Author
Nancy Reynolds
Enthusiastic about teaching lifestyle techniques through clear, step-by-step guides.
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