3 Factors to Consider If You Want to Retire Comfortably

Almost 63 percent of Americans aren’t sure whether Social Security will be enough when they retire.

That’s a pretty high number, if it isn’t obvious enough.

Experts actually believe that this number is low because a number of people do not have pensions or even understand that Social Security wasn’t designed to supplement other income when in retirement.

That said, there are three factors when taken into consideration will help you live well in retirement:

#1: Income

No matter what, your aim should be to generate enough income with your nest egg that you have saved so far but also spend less than you earn too. In fact, you should invest as if you are going to live forever. This way you can save at least $1 million for your retirement with Social Security to add to that total figure.

#2: 401 (k)

If your employer is offering a 401(k) plan, make sure that you avail of it. Usually, they offer a matching contribution and which is a percentage of your salary as a result. Yet the best part of availing a 401(k) plan is to defer taxes and lower your tax bill too. Another advantage of taking this up means that you avoid the temptation of having the money pass through your hands before it reaches the retirement account.

#3: Mortgage finance

Probably the most dangerous type of loan is the 30-year old loan. If one did settle for a smaller home, they could do with a 15-year loan instead. It’s a bad thing to get used to paying off car as well as mortgage loans as lenders say for as long as 30 years. Also, check for the amount of taxes that you might have to pay at your city or county office as this can make or break a budget.