KNOXVILLE (WATE) – Almost half of the households in the United States do not have retirement accounts, according to the website Smart Asset.
So what’s the secret to saving?
Well, one rule of thumb is: It’s easier to save when you don’t have the money in hand.
“Trying to sit there and say ‘I’m going to save $100 every week or $100 every month when you’re staring at it [thinking], you’re not going to spend it,” said Wells Fargo Advisors‘ Jeff Thode. “Putting that into a fund, putting that into an IRA, putting it somewhere you don’t even see it is the best way to save.”
Thode has two pieces of advice for retirement savings: Start early and try to reach the 10 percent mark.
“Whether it’s you putting away ten percent or putting away 6 percent and your company is matching that with 3 or 4 percent,” said Thode. ” The closer you can get to that 10 percent mark, the more comfortable you’re going to be getting ready for retirement.”
As for social security…
“If you’re dealing with a baby boomer or older person, you can pretty much feel secure that your social security statement says says, is what you’re going to get,” said Thode. “If you’re dealing with much younger people use 75 percent of that value.”