How to retire the way you want

The Retirement Magic Number

So we all know that the key to retiring is saving your money and investing well. But there are a few other helpful tips you may not know that can help you retire the way you want.

The Magic Investment Number

There are several ways to invest your money, and investment styles often depend on your age. You can invest large amounts of money into high-yielding stocks that give great returns. The downside to this type of investment is that there is higher risk.

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How to retire the way you want


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So what's the magic formula for getting a good return without risking the bank? Financial experts put that magic number at 16.6%. If you can afford to invest 16.6% of your income (including an employer match) over 30 years, you should have a sufficient amount to retire quite comfortably.

But of course this number changes depending on how much makes you feel comfortable, at what age you wish to leave the workforce, etc. Your personal preferences will impact how much you need to save for retirement.

Take Care of Your Health Before You Retire

You might be wondering what your health has to do with your retirement. Taking care of yourself, exercising and making sure you have good healthcare has a huge financial benefit in your retirement years.

RELATED: 4 Health Habits That Can Save You Money

The better you take care of yourself, the fewer medical expenses you'll have when you hit retirement age. Studies have shown that retirees who took care of their health in the years leading up to retirement, spent less money during retirement on health care issues. In addition to saving you a pretty penny, you'll actually be able to enjoy those years in good health.

Invest In Your Career As Early as Possible

Gone are the days of sticking with one job until you hit retirement age. It's quite common these days for people to work well past 65 years old, which had been the standard retirement age. So what can you do in your career early on to invest in your retirement?

Think carefully about taking on debt later in life. Assess the advantages of taking out student loansto get a degree against the potential income and life impact. If you do go back to school, choose the best program for the right price. It could help you get a raise at work and won't be a bill you'll be paying back in your 80s.

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How to retire the way you want
AUCKLAND, NEW ZEALAND - MAY 27: The Auckland CBD city skyline including the Sky Tower and to the right Devonport, as seen from North head on the North Shore, Auckland New Zealand, Wednesday, May 26 2004. (Photo by Michael Bradley/Getty Images)
Dark clouds hang over a harvested corn field near Biebelried, southern Germany, on August 4, 2014. AFP PHOTO / DPA / KARL-JOSEF HILDENBRAND / GERMANY OUT (Photo credit should read KARL-JOSEF HILDENBRAND/AFP/Getty Images)
 A picture taken on June 26, 2014 shows the landscape and Dolomite mountains near Bolzano, Italy, home and playground to a large number of brown bears. Brown bears were reintroduced in parts of western Europe in 'rewilding' programs, in the east they never died out. They have wandered far and wide and have created antagonism with attacks on livestock. AFP PHOTO/JOE KLAMAR (Photo credit should read JOE KLAMAR/AFP/Getty Images)
A charming little hostel in Stocken on the west coast of Sweden.
Old windmills, meadows and water in Holland
A man meditating in front of Kirkjufellfoss waterfalls, Kirkjufell, Iceland
SYDNEY, AUSTRALIA - DECEMBER 30: Waiting for the new year fireworks, Australians set their tents up at Sydney harbour, December 30 , 2013. (Photo by Recep Sakar/Anadolu Agency/Getty Images)
A Northern light (Aurora borelias) is seen near Tromsoe, Northern Norway on October 21, 2014. AFP PHOTO / NTB scanpix/ JAN MORTEN BJOERNBAKK NORWAY OUT (Photo credit should read JAN MORTEN BJOERNBAKK/AFP/Getty Images)
ST MORITZ, GRISONS, SWITZERLAND - 2015/01/24: Town centre of the ski resort in Winter. (Photo by Olaf Protze/LightRocket via Getty Images)

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Although none of us can predict a layoff at work, do whatever you can to keep yourself employable if that worse-case scenario happens. Try to take on new projects at work when they're available. If your work offers skill-up classes or workshops, take them. Every little thing you can do to make you a desirable employee will help you keep your job until retirement, or help you recover if you have a job change mid-life.

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