4 Things to Do Today if You Want to Retire in 10 Years
The years leading up to retirement can be exciting. When you're a decade away from leaving the workforce, you can finally start to dream about living out your goals -- traveling, moving close to family, or enjoying the freedom of not having to punch a clock. If you want your retirement to go smoothly, there are a few key moves you'll need to make before that milestone gets too close. Here are four items to check off your list if retirement is 10 years away.
Hopefully, by the time you're 10 years from retirement, you'll have socked away a decent chunk of money in your 401(k) or IRA. Now's the time to make sure your savings are adequate. If they aren't, you still have an opportunity to make up for lost time.
As a general rule, aim to retire with about 10 times your ending salary in savings. If you currently earn $95,000 a year, it's safe to assume that in the course of the next 10 years, your salary will increase to $100,000, leaving you with a savings target of $1 million. If you already have a good $600,000 or so in your retirement plan, and you expect to contribute $500 a month to that plan over the next 10 years, then you're good to go (assuming your investments in that plan give you a somewhat conservative 5% average annual return). If you're sitting on $400,000, you'll need to ramp up your savings game.
Source Fool.com
