Your future depends a lot on how you are today. Be it on the financial aspect, or on the health front, or even how you behave with others. For example, if you eat healthy and nourishing food, remain physically active and exercise yourself devotedly and remain happy, it will go a long way in maintaining a good physical and mental condition of your body. Likewise, today if you continuously keep in touch with your relatives, friends and other acquaintances, lend helping hands in their times of difficulties and continue doing so, when you pass through lean phases of your life in the future, barring unavoidable circumstances, rest assured, they will not let you down.

So also, if you are careful with your money today; if you squirrel away a certain portion of your salary every month or whenever you get your bonus and the like; if you invest for tomorrow, your future will see you comfortably placed and content with your hard-earned savings. But how much will you need to save, so that you can be financially secure when you retire?

If you are 25 years of age, you should invest about 25% of your assets in fixed income and 75% in equities. A 50-year old must have 50% of his assets in fixed income while a retiring/retired 65 year old must have at least 65% of his assets in fixed income. This is a basic guideline for the prudent investor.

As per advice from financial experts, you would need an amount between eighty and ninety percent of your pre-retirement income every month. You must cultivate the habit of saving early in life. An appropriate amount would be ten percent of your salary. Also, it would be worthwhile if you do a survey of all the retirement health insurance plans; how soon you can start saving, etc. When you retire, you may require money for your entertainment, travel and for gifting someone. Plan in such a manner, that all these expenses including your retirement daily needs, can fit in a budget of about three to four percent of your retirement savings annually.

Despite every care taken of your health in the earlier years, it is very possible that bad health can knock on your door in your old age. If you have made provisions for the same, it is commendable indeed. Sometimes, you may need to avail home health care, which is quite pricey; about $35,000 or more per year. You may even need to be an in-patient in a nursing home, which ranges much higher. For such services, the lack of coverage of medical bills and expenses by Medicare or Medicaid implies that these absolutely expensive bills are to be paid by you. You must plan ahead for such an amount in an emergency.

In order to retire soundly, you should start saving about eleven times your annual pay. This will also cover the cost of inflation (around 3% annually) and medical services and also the benefits of Social Security (the U.S. Federal Program for the old-age, survivors and disability insurance). This will also supplement your income from the 401(K) plan. As far as possible, your portfolio should cover regular pre-retirement annual contributions, payroll deductions, company contributions and savings thereon.

You must have a retirement plan that can also withstand market changes. This is a generalized assumption taken with the view point that your retirement age is 65 years and you have at least thirty years of regular service, so if you wish to live your retired life just as comfortably, maintaining the same lifestyle that you are living today, Start Saving Early in Life; Eleven Times Your Yearly Pay should be your aim!

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