Los Angeles-Long Beach, CA (PRWEB) December 19, 2013
In an article published on December 17, Debt Consolidation USA provide consumers with four important rules that they can choose from to help with their retirement planning needs. The title of this article is “4 Rules That Can Help With Retirement Planning.” The purpose of these rules is to assist consumers in making the right choices about their retirement targets and how they will use the funds they have put aside to finance their future needs.
The article mentions how retirement planning is necessary for everyone. But one of the challenges is making sure that the funds that will be targeted by the pre-retiree will not fall short. With this, the debt relief website provided 4 rules that consumers can follow.
1. Multiply by 25. This rule will help the consumer calculate the amount that they will save up for retirement. The article explains that the consumer simply multiplies their expected annual income by 25. The amount will be the target savings to live a comfortable life. The reason for the number is the inflation rate and other expected costs come retirement (e.g. medical treatments). The article explains that the consumer must aim for a 4% annual return of their investment.
2. 4 percent rule. The next rule is somehow similar to the previous but this time, it tells consumers how much they should withdraw from their retirement fund to make sure it lasts. The article explains that the consumer should calculate the 4% of their retirement fund and withdraw that amount on the first year of retirement. On the second year, they will withdraw the same amount and add a little for the inflation rate. Using this withdrawing computation, the retirement fund is expected to outlast the needs of the retiree.
According to the article, the first two rules are considered to be too risky for consumers. Given that, the article also provided two rules for the more conservative retirement planner.
3. Multiply by 33 rule. This is the same as the first rule but instead of using 25, the consumer must use 33 in the calculations.
4. 3 percent rule. This is similar to the second rule but instead of 4%, the consumer will only withdraw 3% of the retirement fund.
The article explains that the 3% is based on the average inflation rate that is currently in the market. The consumer can choose based on how risky they can get when it comes to their retirement planning.
The rest of the article provide tips on how to determine that amount of money that they will save up for retirement. To read everything that Debt Consolidation USA has to offer about retirement planning, click on this link: http://www.debtconsolidationusa.com/personal-finance/4-rules-that-can-help-with-retirement-planning.html.
Debt Consolidation USA holds hundreds of articles that are meant to help consumers deal with their personal financial issues. Visit their website to get the information needed to make better and smarter financial choices.