The Clark Howard Podcast 12.30.24 BEST OF: The Magic Number For Retirement / Investing: A Cautionary Tale
Dec 30, 2024
Discover the concept of a 'magic number' for retirement—how much you really need to be financially secure. Dive into risky investment pitches, from hedge funds to private equity, and learn why it's crucial to avoid non-fiduciary advice. Hear about a listener's success with a 529 college savings plan, leading to substantial educational funds. Plus, get tips on building credit for young adults and safe solo travel destinations for women. Stay informed to navigate your financial future wisely!
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Retirement Savings Realities
- The average American's retirement savings goal is around $1.5 million, but most retirees don't have that much.
- Don't get discouraged; many people retire comfortably with less, supplementing with part-time work or other income sources.
Start Small, Grow Steady
- Start saving for retirement now, regardless of your age or current savings.
- Build the habit slowly by contributing a small amount to a Roth IRA or workplace retirement plan, increasing contributions every six months.
Calculate Your Savings Rate
- Determine your personal savings rate by calculating how much of your net income you don't spend.
- Strive to save 10% of your income, but 15% provides more financial security over your lifetime.