How Much Money Will You Need to Retire

*Figures reflect assumption that your nest egg earns 6% a year. After the number of years shown, your account balance is $0.

Think Retirement

The future will be here before you know it. It’s never too late to start planning and saving for your future. Set a goal. Start Now!

There’s no doubt about it: Saving for retirement is hard. There are so many other demands on your paycheck — mortgage payment, car payment, credit card bills, groceries — the list seems endless. It’s much easier to focus on your immediate needs and things you want right now rather than planning for your needs on down the road. We always think that we’ve got time to make it up, so we put off saving. If you start contributing a small amount to your 401(k) savings account today you will be surprised at what you have in even 5 years, then amazed in 10 years. History has proven over the years that investing your money is a smart decision that will pay-off in the future by providing you additional income for your retirement. Don’t shortchange one of the most important people in your life: You!

Here are a few tips on what you can do to get started Saving:

• Build a Budget or Do You Need Help Managing Your Budget?
  If you’re not currently saving or you feel that you should be saving more, then the first step to getting your savings on track is to know where your money is going. Fidelity has a great online tool called Budget & Debt Management Center. It allows you to build your budget to zero in on your spending. If you haven’t already, add "Savings Plan" to your list of budget items and write down the amount (or the additional amount) you want to invest each month. Putting the amount in writing can help you achieve two important results: First, you’ll start thinking of "saving for retirement" as an important financial obligation. Second, you’ll feel more committed to following through on your savings budget.
• Spend Less Than You Earn
  Its human nature — we like to spend what we earn. Whatever goes into the checking account is considered "fair game." If you have money leftover at the end of the month, it’s usually squandered away on impulse buys at the mall, the grocery store, eating out or on eBay. Sound familiar? If this happens to you, then increase your contribution percentage a percent. Your contributions will be taken out of your paycheck before you’re tempted to spend the money on items you really don’t need. If you’re worried about accessing your money when you’re in a pinch, consider investing some of your contributions on an after-tax basis. You can withdraw your after-tax contributions at any time. Also, learn to monitor and manage your credit card debt.
• Change Your Mentality
  If you’re like most people, saving for tomorrow means you have to give up something you want today — a new car, a new wardrobe, a new flat screen TV. Giving up the things you want is hard to do. It’s time to turn the tables on this way of thinking. The next time you find yourself admiring something you’ve "just gotta have," ask yourself "What am I giving up in my retirement savings if I buy this?" If you invest $100 a month in an account that earns an average annual return of 6%, you’ll have $16,470 after 10 years and $46,435 after 20 years.
• Seek Help If You Need It
  A financial planner or advisor can help you establish a clear retirement savings goal, help you decide how much to contribute to the Savings Plan and other investments (like an individual retirement account [IRA]), and help you choose an investment mix that’s right for your personal situation. If you are approaching retirement, a professional can also help you decide when and how to start taking distributions from the plan.
  
  Fidelity has numerous Investor centers located throughout the U.S. with financial planners available to meet with you to answer any of your investment and financial planning questions along with assisting you to prepare for your retirement if you desire. The consultation is free and there is no obligation or sales pressure. Contact Fidelity today at 1-800-256-4015 or go online to locate a center near you. If a center is not located within your vicinity you may want to set up a telephone conference call with a financial planner to discuss your financial future.