Massage & Bodywork

MAY | JUNE 2018

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Thankfully, financial planning doesn't have to be scary, and getting your retirement plan figured out is really empowering. Building a satisfying, sustaining massage practice includes planning for your own retirement. It's a step that many of us overlook and can lead to anxiety now and financial instability later. Let's break down the options for your retirement planning in plain, simple terms that will make it easier for you to understand how to start saving for your retirement without feeling lost and confused. HOW MUCH DO I NEED TO SAVE? This is the most basic question: How much do I need? It seems like a simple question, but a lot of people don't even know how much they should be saving. It helps to work backward to figure it out. What do you want your income to be when you retire? Let's pick a number like $50,000/year just to keep it simple. If you would like to generate that much income at retirement (meaning, without working) you will need enough money so that you make that much off the interest. The usual figure to project interest-earned income is 4 percent. This means that whatever big chunk of money you have saved at retirement, you would be living off 4 percent of that per year. Why 4 percent? It's generally regarded as a "reasonable" figure based on the historical performance of the stock market. It's also a bit controversial, so you may read other opinions on this. Surprise! People like to argue about money. Here's the thing: don't get too hung up on it. These are just guidelines to get you started saving money. If you're off by a percent or two it's not the end of the world. Missing the mark a little is better than doing nothing at all. How much money do you need to save to get that retirement income from interest? You can do some math to figure it out, but don't bother. There are a million websites out there that will do the calculations for you. My favorite is the When most people think of the phrase retirement planning, they conjure up images of old guys in suits peering over their glasses at you, throwing out financial jargon designed to make you feel dumb. It's true, retirement planning isn't glamorous. There's a learning curve, and it takes a little effort. You know what is glamorous? Being able to live, eat, and play wherever you want when you retire. Not having to eat ramen off a hot plate while living in your favorite niece's basement is pretty nice too.

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