Money Management

For many Americans, the mark lies over $500,000. Read on to learn more — and what to do if you haven’t saved enough. 

When saving for retirement, it can be difficult to know how you compare with others in your age group. There is no hard-and-fast rule for how much is enough, but asking the right questions can help point you in the right direction. So, how much should you have saved by the time you’re 65?

How much money is enough?

It can be challenging to know whether your savings will last you throughout retirement. Every saver has a unique situation, and some pieces of the puzzle can be very complex. What’s more, the future is frustratingly uncertain — how markets will perform, what tax rates will be, and what unexpected expenses lie in the future are all unknowns that can have a big impact on your retirement.

A rule of thumb won’t tell you exactly how much you need to save for retirement, but it can get you in the ballpark. By age 65, most sources recommend having saved between eight and 12 times your annual salary. So, for an earner making $70,000 per year, a good goal would be over $500,000, according to the rule of thumb.

You can then adjust the above number based on a handful of factors. If your income sources in retirement, things like Social Security, pensions, and annuities, are greater than your monthly spending, you will likely need to save less. If you or your family have a history of expensive health issues, or above average longevity, it may be wise to save more.

Not there? Do this

Saving up over $500,000 is no easy task. Luckily, there are a few ways for those nearing retirement to increase their savings — or do more with less. Let’s focus on two strategies: building wealth and making it go further.

There are a few ways Americans can boost their assets in the years before retirement. First, 401(k)s and IRAs allow older Americans to save more each year in the form of catch-up contributions. In 2023, those over the age of 50 can save $7,500 more each year in their 401(k)s, and $1,000 more each year in their IRAs than younger workers. Another option is to delay retirement. Continuing to work for even a few extra years can allow you to continue building your savings, and your Social Security benefits may also increase.

It may also be helpful to look at post-retirement expenses, which can whittle away your savings. Reducing monthly expenses, even by a small amount, can compound over many decades spent in retirement. Entering retirement debt-free, if possible, can also help. Even low-rate debt can eat away at retirement balances — and could make you miss out on years of compound growth.

What else you should know

Even with a long history of saving and investing wisely, many Americans can’t help but feel uneasy about their retirement. Retirement brings with it many “what-ifs” that can’t be answered with a rule of thumb. If you are uneasy about your financial future, a qualified professional may be able to help.

There is no one-size-fits-all when planning for retirement. A qualified fiduciary financial planner can provide an expert opinion and advice unique to your financial situation, and can answer all of your questions along the way. You are the foremost expert on your own personal finances — but seeking a second opinion can go a long way toward achieving peace of mind.

How much do you need to have saved by age 65? The answer depends on your personal circumstances, and on factors like longevity, post-retirement income sources, tax rates, and more. Beyond a savings estimate, seeking the advice of a qualified professional can help inspire confidence in your ability to successfully retire.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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There are many great items to choose from at Sam’s Club. Here are some of the best ones at an affordable price. 

It’s hard to beat a warehouse store for great prices on everyday essentials. For instance, Sam’s Club offers big bargains on just about anything you can use in bulk.

The low prices aren’t the only reason people are loyal to Sam’s Club, however. Sam’s Club’s Member’s Mark house brand is a great blend of value and quality, as evidenced by the thousands of positive reviews.

Here’s a look at some highly rated Member’s Mark items that also offer up a pretty great bang for your buck.

1. Member’s Mark Coffee Single-Serve Cups: $27.98

Details: 100 count package, various flavors

Cost: $0.28 per cup

Rating: 4.8 stars, 4,366 reviews (French Roast flavor)

What shoppers are saying: “What a great tasting coffee, and the price has made it our go-to morning cup.”

2. Member’s Mark Nasal Spray: $24.88

50mcg Aller-Nose, Fluticasone Propionate Nasal Spray (0.62 fl. oz., 6 ct.)

4.9 (1742)

Details:

Cost:

Rating: 4.9 stars from 1,742 reviewers

What shoppers are saying: “Just like the name brand, only much cheaper. Works great for me!”

3. Member’s Mark Ultra Premium 2-Ply Toilet Paper: $22.98

Details: 45 rolls, 235 sheets per roll

Cost: $0.02 per sheet

Rating: 4.9 stars from 86,039 reviewers

What shoppers are saying: “This bath tissue is as good as all the other name brand tissues if not better! It’s strong, soft, and a great value. Would not use anything else!”

4. Member’s Mark Alkaline AA Batteries: $21.48

Details: 48-count pack

Cost: $0.42 per battery

Rating: 4.7 stars from 3,465 reviewers

What shoppers are saying: “I have bought many batteries in my lifetime. These are the best, last the longest, and are a great value for the price.”

5. Member’s Mark Power Flex Tall Kitchen Drawstring Trash Bags: $17.98

Details: 13 gallon bags, 200-count box

Cost: $0.09 per bag

Rating: 4.8 stars from 21,151 reviewers

What shoppers are saying: “These are THE best low-cost garbage bags ever!”

6. Member’s Mark Roasted & Salted Pistachios: $14.98

Details: 48 ounce package

Cost: $0.31 per ounce

Rating: 4.8 stars from 2,301 reviewers

What shoppers are saying: “I buy a bag on every visit. Can’t keep them in the house! Terrific snack.”

7. Member’s Mark Organic 100% Pure Maple Syrup: $12.98

Details: 32 ounce jugs

Cost: $0.41 per ounce

Rating: 4.8 stars from 2,800 reviewers

What shoppers are saying: “I only use pure maple syrup. This has a really good taste. Great product! Never disappoints!”

Create your own “best of” list

Turns out, you really can make your home and your bank account happy at the same time! Of course, everyone’s needs will differ; no item on the planet could make everyone happy, and that sadly applies to Member’s Mark as much as anything.

To really figure out the best Member’s Mark items for your family, you’ll have to try them yourself. There are hundreds of products to test out, so enjoy the ride!

While you’re exploring the wide world of warehouse store products, make sure you’re also applying some of that curiosity to maximizing your credit card rewards. Mastering your personal finances requires a multi-pronged approach — like saving on toilet paper while also earning cash back rewards.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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I’m trying to grow my net worth, but there are some techniques I’m not interested in. Keep reading to learn what wealth-growing methods I’m avoiding. 

I hope to become wealthy one day. But, despite my desire to have a big bank account balance and a ton of money in a brokerage account, there are three popular wealth-building approaches I’m unwilling to even consider trying. Here’s what they are.

1. The FIRE Method

FIRE stands for Financial Independence, Retire Early. It’s a movement focused on becoming financially independent at a young age, with financial independence defined as being able to produce enough income from investments that no paycheck is necessary.

The FIRE movement is focused on extreme savings, with some people saving 50% to 75% of their incomes and living very minimalist lifestyles.

While this is great for people who are interested in slashing living expenses to gain financial freedom at a young age, it’s not something I’m willing to try. I don’t want to sacrifice and scrimp for years and years just to have enough saved to be financially independent at some future date. Being able to go without a paycheck just isn’t that important to me. Instead, I’d rather do a job I like for more years, save a reasonable amount of money over a long career, and plan to retire at something closer to the normal retirement age.

Before jumping into the FIRE movement yourself, you may want to think about whether financial independence at a young age is worth the sacrifices required to get there. This may make sense to you, but for me, it just doesn’t add up.

2. Living in a tiny house

Living in a tiny house is another wealth-building move that I’m saying “no thanks” to. The tiny house movement is focused on living sustainably, often both to help the planet and avoid high mortgage costs and living expenses.

Tiny houses are typically around 100 to 400 square feet and the bills associated with them are very low. You may be able to buy your house outright or borrow a very small amount, and since the space is so small, you won’t need to spend a lot of time or money on utilities, cleaning, or maintenance.

While I definitely could keep a lot more money in my checking account if I didn’t have my mortgage, electric bills, and property taxes to pay, I absolutely would never even consider living in a tiny house. With two kids, a dog, and a husband, I am willing to pay a premium to have a lot of extra space — especially because I work from home, so I need a place to get away where it’s quiet.

3. Real estate investing

Investing in real estate is another wealth-building endeavor that would never go on my list. I have many friends who own and rent out commercial or residential properties and I know others who purchase fixer-upper homes and flip them for a profit. And I know, if you are smart and disciplined, you can make really good money doing this.

However, it simply isn’t something I want to try my hand at. I don’t like the idea of getting a mortgage loan to invest, since borrowing to buy something I could lose money on seems too risky to me. It also seems like there’s too much work involved, either dealing with tenants or finding a property management company or arranging for the work to be done on a remodeling project.

Many people are successful in real estate and it’s often billed as a surefire way to get rich, but considering the downsides is important too.

You don’t have to try every wealth-building technique out there

These are three approaches people take to building wealth that are hard limits for me. But, I do other things to try to grow my net worth, such as investing in the stock market and working to regularly increase my income.

The reality is, there are many ways to get rich and you don’t have to try many or even most of them. You just need to decide what your path to financial success and freedom will be and stick to it.

To make that choice, think about your comfort level with different investments, the sacrifices you’re willing to make now in exchange for more money later, and the lifestyle you want to lead both now and in the future. By considering these issues, you can find the techniques that make sense to you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More