RETIREMENT
RETIREMENT
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BY APPRAISAL BUZZ STAFF
While there is no guaranteed formula for a
comfortable retirement, there are ways in which
you’re able to estimate and start saving today for
your future. If you haven’t already started saving, you
are not alone! A recent survey from GoBankingRates.
com found that one in three people have saved
nothing at all, and only a little over 50% of Americans
have less than $10,000 saved for retirement. While
we are not retirement professionals, we wanted to
shed light and get people thinking about their
futures. The great news for those who have not
saved enough is that you can make
“catch-up” contributions to your 401K
limited to $19,000 in 2019. Even
better, is that those over 50 can
contribute an additional $6,000,
bringing your yearly 401K limit
total to $25,000. Now, that adds
up quickly.
One common guideline to follow is to
aim to replace 70% of your
annual pre-retirement income. You
can replace it using a combination of
savings, investments, Social Security
and other income sources (part-time
work, rental income, etc.). The Social
Security Administration website has
several calculators to help you
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It also remains important to
consider how your expenses will
change at that point in your life.
Some things, like health care and
travel, are likely to increase. But many
recurring expenditures will decrease:
36 | APPRAISAL BUZZ FALL 2019
You no longer need to save for retirement. Loans
and mortgages have most-likely been paid. And
your taxes are likely to be lower — payroll taxes,
which are taken out of each paycheck, will be
eliminated completely.
Be sure to adjust based on your retirement plans. If
you know you won’t have a mortgage, for instance,
maybe you plan to replace only 60%. If you want to
travel every year, you might aim to replace 100% or
even 110% of pre-retirement income.