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In your 30s, the range increases to 15% to 20%.
And in your 40s, you should shoot to get even more aggressive with your savings.
But if you’re free to, do it based on your gross income instead.
As your income changes throughout your 40s, adjust your savings amount accordingly.
Again, it all depends on your lifestyle needs and retirement goals.
Its wise to reassess your retirement goals and adjust your investment strategy accordingly, Shirshikov said.
Consulting with a financial advisor can provide personalized guidance to ensure youre on track to meet your retirement objectives.
In 2024, the maximum annual contribution limit for 401(k) plans is $23,000.
The limit on IRAs is $7,000 a year $8,000 for those ages 50 and up.
you’ve got the option to have both types of plans for maximum savings.
But you dont have to stop there.
There are a few other types of plans that might be good additions to your overall retirement savings plan.
Consider saving into a taxable brokerage account.
You ideally want to have different buckets of money to pull from in retirement accounts withdifferent tax characteristics.
A taxable brokerage can provide you with flexibility, especially if you plan to retire early, DallAcqua said.
Its sound advice for people at any age 40s or otherwise.
As you cut costs, save the difference.
Maybe you drive your car a little longer or take the vacation a little closer to home.
Over time, even a small, but consistent saving strategy will create financial freedom in later life.
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