If you want to retire you need to know these numbers first
A 401 balance is important, but without any context it’s just a number. To be financially prepared for retirement, investors also need to have a rough idea of when they’ll retire, how much or often they plan to contribute to their account until then, and a few other necessary figures.
TIAA tells customers what they could expert out of their 401 balance in their quarterly and annual portfolio statements. The document shows what the total balance of the account is at the end of the quarter, for example, and what rate of return it has. Immediately underneath, a subhead asks “Will you have enough for retirement” with a chart that shows what the estimated monthly income in retirement would be at the current contribution rate, as well as increased contribution rates.
Principal, a Des Moines-based plan sponsor, also provides these illustrations on benefit statements and online, said Joleen Workman, vice president of customer care at Principal. Seeing such a large figure translated into a monthly income stream keeps their retirement expectations and planning realistic. “For many individuals who have saved consistently in a 401 or other defined-contribution plan, their account may represent the single largest pool of assets they’ve ever saved,” Workman said.
Many 401 providers offer customers tools to calculate their retirement income based on their portfolios, where they can input their own facts and estimates to get an idea of what their balances equate to and what they need to do to boost it. Vanguard has its Retirement Readiness Tool, which aggregates customer data, including current balance, Social Security estimates and other outside assets as well as forecasts of future contributions and rates of return.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
8 ways to give your grandkids money without sacrificing your retirement savings - Business InsiderTo give your grandkids money without clearing out your 401(k), considering saving for their education, or making them your life insurance beneficiary.
Read more »
Revolut raises $500 million at $5.5 billion - Business InsiderEurope's buzziest challenger bank Revolut is now worth $5.5 billion after raising $500 million from Silicon Valley growth fund TCV
Read more »
Amex Platinum review 2020: Benefits, welcome bonus, and more - Business InsiderIf you travel a lot and can use benefits like Uber credits and complimentary hotel elite status, it’s possible to get more than $2,000 in value in your first year
Read more »
Major American companies are reeling from coronavirusA growing number of major American companies — including United Airlines and Mastercard — are saying coronavirus is hurting their business.
Read more »
The *Actual* Benefits of the Squatty Potty, According to ExpertsSquatty Potty reviews on Amazon are glowing, but what is a Squatty Potty, exactly? Here, experts explain Squatty Potty benefits and how to use a Squatty Potty.
Read more »
Former High School Runner Rediscovers the Sport and Drops 70 Pounds“I am living proof that these things are possible.”
Read more »