Financial management experts customize savings plans for Americans

Financial management experts customize savings plans for Americans Experts point out that financial management rules are the simplest. If you follow the rules, you will be satisfied, but this does not...

Experts point out that the rules of financial management are the simplest. If you follow the rules, you will be satisfied, but this does not guarantee that you will get the results you want.

Nonetheless, the savings strategy is particularly effective. Setting a short-term goal will help you put your words into action and start learning the principles. This is half the battle.

Recently, Fidelity Investment Company has set targeted savings goals based on different stages of age, which can stimulate individuals to take practical actions.

Here are some guidelines:

- By age 35, you should have savings equal to your annual salary.

- At the age of 45, you should have saved three times your annual salary.

- At the age of 55, you should have saved five times your annual salary.

- When you are 67 years old or retire, you should have savings equal to eight times your annual salary. Of course, many people also try to earn several times their salary to ensure a happy retirement life, and they are generally able to follow the savings goals set by financial experts.

Financial consultant Aon Hewitt pointed out that the ideal goal is to set the goal at age 65 and have savings equal to 11 times the annual salary when you retire.

Many Americans do not have the habit of saving. Therefore, experts suggest setting some short-term goals to catch up and strive to prepare for retirement life, which is also a guarantee of personal financial security. The hypothetical goal is as follows:

- Start enrolling in a workplace retirement plan such as a 401(k) as early as age 25 and continue saving until age 67.

- Start saving 6% of your salary every month, and then increase by one percentage point every year until you save 12% of your salary.

﹣Join a pension savings plan coordinated by your employer. For every dollar saved, the employer contributes 50 cents, up to 6% of your salary, and your investment portfolio will grow at a rate of 5.5%.

﹣Social security benefits are also among the items considered.

- Every year, ensure that your income grows 1.5 percentage points faster than the inflation rate. To establish a savings model, these assumptions are reasonable.

But consider that almost no one starts saving at age 25, and millions of Americans have their careers interrupted 42 years after entering the workforce.

Under this model, you will save 12% of your salary every month until you are 32 years old.

One of the most common rules of thumb is to save 10% of your salary, however, the reality is that many people don't save seriously until they are well into their 40s or 50s. Meanwhile, experts recommend investing in stable stocks to earn 5.5% growth annually.

At present, many people are arguing that when they retire, social security benefits may no longer be applicable, and many people's wages will fall and cannot keep up with the rate of inflation.

Of course, some people think that this would be too negative an extrapolation of future economic crises. However, the sooner you develop the habit of saving, the more secure your future life will be.