Retirement is a goal that most people have but very few can tell me how much they are going to save in a retirement account this year. Pre-retirees that work for company’s with retirement plans (401ks and 403bs) can contribute $17,000 per year. Most people are eligible to contribute to a Roth or Traditional IRA in which they can save $5,000 to $6,000 per year depending on their age. If retirement is an important goal than getting a monthly contribution nailed down is critical.
Once you have an account, the asset allocation is going to determine how it will grow. I help my pre-retired clients (and my retired clients’ children) to set this up. Social Security is not going to be the same in thirty years. The retirement age will be raised (probably to between 75 and 85) and the benefit amount will be smaller and/or means tested. Now is the time to plan to have options in the future.