By The Date of Retirement, It Is Possible To Have 8x Your Salary

Pennygem

Experts say we should all have 8 times our income saved by 60 for retirement! PennyGem’s Lenneia Batiste has tips on how to accomplish this lofty goal.

Transcript

00:00Yeah, experts at Fidelity Investments say that by age 60, we should all have eight times our

00:09income and savings, a whopping eight times our income. Yeah, I know it sounds pretty lofty,

00:15but there are real ways to make this happen, and it should start way before your 60th birthday.

00:20Experts say first, get all the free money your employer offers. Some companies offer an employee

00:25sponsored retirement plan like a 401k and matches whatever you contribute. NerdWallet suggests

00:31that you direct your first savings dollars into that account at least until you receive the full

00:36match. Next tip, watching your spending, especially with credit cards. Balances on credit cards can set

00:42you back at any age. An expert tells CNBC that the ease of online shopping can increase impulse buys.

00:48They suggest following the 24-hour pause rule or waiting 24 hours to buy something you want.

00:54It's a psychological way to slow down the buying process and help curb spending.

00:59Tip number three, pay off your mortgage. All experts agree that the timing of when you do this is

01:04personal and depends on many factors, but it should definitely be a priority. Ivory Johnson with Delancey

01:10Wealth Management tells CNBC Select that your mortgage is usually 30% to 40% of a person's spending,

01:17and since the biggest fear of any retiree is running out of money, not having a mortgage means

01:22they'll always have a roof over their head. Other things to keep in mind, discover a passion that

01:27brings in income and invest in an IRA, especially if your company doesn't offer a 401 plan. Always to

01:33make sure by 60, you're set for retirement.

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