You, by the numbers
Certain numbers help you better understand your financial life and lifestyle. Knowing your numbers can help you stay on track or inspire you to make changes to help you stay on your path to reaching your financial goals. Here are a few numbers experts say everyone should know to gauge their finances.
- 70 – 100 percent: Experts suggest you’ll need at least 70% of your pre-retirement income to maintain your standard of living in retirement.
- 25 percent: Everyone’s savings rate is different; but higher percentage savers (15% toward retirement; 10% for other goals) save on borrowing costs and may be able to achieve goals more easily.
- 36 percent: Debt can be a necessity, but your debt-to-income ratio should be below 36 percent for favorable lending rates. Anything higher could be a sign of financial problems. Pay down “bad” debt first.
- 720-850: The range of “excellent” FICO credit scores. Check yours annually, watching particularly for signs of fraud.
- 39.6 percent: The top federal income tax rate. Knowing your rate factors in to your tax planning strategies.
Call our team today to schedule a no cost, no obligation appointment with one of our licensed financial advisors to help understand your numbers and prepare a plan for your financial future.
TFCU Financial Advisors
6501 Tinker Diagonal, MWC