Although cryptocurrencies, such as Bitcoin, have become increasingly popular, not many understand how they work. Cryptocurrencies are, as the name implies, digital currencies that operate independently from a central bank. Highly sophisticated encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. In addition to becoming a popular form of tender, speculators have also been actively buying and selling them on exchanges.

Our take: Being crypocurrencies are unregulated, we shy away, from an investment standpoint. Buyer beware!

A Simple Guide To Understanding Cryptocurrency

Here's a reality check and some very difficult questions to answer: How much will you spend when you are retired? The answer to this question will thus give you an idea of how much you need to have saved and invested prior to retiring. Naturally, your spending in retirement will vary based on countless variables. Will you spend less when retired? Will you spend more? What about health insurance?

If you are having trouble figuring out your answers, let us know , as that's our specialty.

Here's What the Average Retiree Spends