NORFOLK, Va. — Your life circumstances directly impact how much you can save, and here in Hampton Roads, that reality hits home for families juggling everything from rising housing costs to military deployments.
I looked into how much money you should have in savings at different stages of your life, speaking with a financial advisor to understand the challenges and opportunities facing our community.
From 26-year-old Brooke Kaplan just starting her financial journey to retirees like William Marple from Virginia Beach, the savings landscape varies dramatically based on where you are in life.
"Saving money is important to me. I want to feel prepared for my future, saving up for big purchases like a home," Kaplan said.
Meanwhile, Marple represents those already relying on their retirement savings. "My retirement pays for my rent," Marple said.
To understand how much we should save overtime, I spoke with Zach Tekamp, a wealth advisor at Heritage Wealth Management Group in Norfolk.
"I like the idea of backing into how much you should save based on how much you expect to need to spend," Tekamp said.
This approach means examining your goals, both short-term and long-term.
"If you wanted to come up with short term goals, and you wanted to quantify that, as the next one to three years, that's perfectly fine. If you want to have intermediate goals, and say, I want to see what the next five to 10 years look like. And then obviously, everyone has their long-term goals," Tekamp said.
The national guidelines from Fidelity Investments provide a starting point, though they're based on national averages. Here in Hampton Roads, your situation might look different.
In general, Fidelity Investments recommends that you should at-least save:
- One times your salary by your 30th birthday
- Three times your salary by your 40th birthday
- Six times your salary by your 50th birthday
- Eight times your salary by your 60th birthday
Beyond retirement savings, emergency funds should cover housing, transportation, food, health care, and utilities. Bankrate suggests an easy formula for calculating this figure: multiply your monthly expenses by three to six months.
"I think what's important is you have to kind of control the controllables, right? So, you can control your savings rate, you can control your behavior," Tekamp said.
While they are difficult to answer, Tekamp recommends asking yourself three key questions:
- How long am I going to live?
- How much income do I need every year in retirement to live the life that I want to live?
- What sources of guaranteed income will I have in retirement?
He said those questions will help you shape your financial plan.
Whether you're a young military family just getting started, a Norfolk teacher planning for the future, or a Virginia Beach retiree making your savings last, the key is starting where you are.
Bankrate says you can also build your savings by paying down debt, choosing a high-yield savings account, and maximizing retirement opportunities. Take advantage of your company match and consider maxing out a Roth IRA as well.
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