It's easy to be confused about just how much money you have to save for retirement. Time is your best friend when saving money. So says Troy Sharpe of Oak Harvest Financial Group. Begin with the basics. "The most important thing is to create a habit where you pay yourself first - ideally with a direct deposit - and then you set up an auto-invest feature."
Fidelity Investments says to save your salary by 30 all the way up to 8 times that at 60. Sharpe says plan ahead. "Look at what you're saving and estimate a rate of return - 5%, 8% - to understand how much money you'll have in the future if you invest/save that much." Click here to find the Oak Harvest Calculators which will help you with your planning.
Sharpe continues to say the most important part of saving is to set up a pattern early and stay with it. "Have a plan based on how much you'll be saving with an assumed interest rate - because compound interest rate is a very important rate - because that will show you how much money you'll have in the future."
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Saving for retirement starts with a habit.