Traditional Individual Retirement Account (Traditional IRA) Your money should grow more over time in a more traditional investment savings vehicle. Currently, the highest-yielding savings accounts are under 1% on the dollars saved, and have been trending down with current Federal Reserve policy to keep its benchmark rate lower for longer. It's risk-free - money inside of a federally-insured savings account does not get invested in stocks or bonds - but you'll make next to nothing on the funds in the account. Accounts you can use for retirement savings: How much you can save and what tax you may have to eventually pay, though, does change depending on the account. Those numbers and formulas can be a guide, but they're not gospel - everyone's situation will be different. Some advise that you need to save 80% to 90% of your annual pre-retirement income, or that you need to save 12 times your pre-retirement salary. Over the years, finance experts have said that people need to save $1 million - that's recently climbed to $2 million as the cost of living and age demographics have changed. What's the magic number to hit for a golden retirement?

Travel, including flights, hotels, gas if driving.

Entertainment, including restaurants, movies, plays.

Day-to-day living, such as food, clothing, transportation.

Health-care costs (Fidelity estimates that the average couple will need $295,000 in today's dollars for medical expenses in retirement, excluding long-term care.).

Housing costs, including rent or a mortgage, heating, water and maintenance.

Here are some things you should factor into your calculations:

Match up revenue and expenses and you'll get a good idea of what you'll need to set aside for every year of your retirement. Factor in pension income if you have one, social security payments and any other dollars, such as rental income from a property, that may come your way. Next, add up all the income you might receive in your post-working years.

Remember, some of the costly expenses you have now, such as a mortgage or childcare costs, will no longer exist, which could result in a decrease in your overall expenses as you near retirement. You'll also want to factor in your day-to-day expenses, like housing costs, food and health care. So plan for higher prices in the decades ahead. We don't know what prices will be like in the future, and in recent years inflation has run below the Fed's benchmark of 2%, but the average inflation rate in the U.S. Then think about how much everything will cost. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

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